American Express Company has announced its financial results for the second quarter, highlighting a record revenue of $17.9 billion, which marks a 9% increase compared to the previous year. The company reported a net income of $2.9 billion, slightly down from last year's $3.0 billion. Earnings per share were recorded at $4.08, a 2% decrease from $4.15 the previous year, but there was a 17% increase when excluding the $0.66 gain from the prior year's sale of Accertify. The company also reported a 7% increase in Card Member spending, setting a quarterly high. The effective tax rate decreased to 18.7% from 20.4% the previous year, influenced by discrete tax benefits related to the resolution of prior year tax items. Looking ahead, American Express reaffirmed its full-year guidance, projecting revenue growth of 8 to 10% and earnings per share of between $15.00 and $15.50. The company expressed confidence in sustaining its leadership in the premium space with upcoming product refreshes, particularly the U.S. Consumer and Business Platinum Cards.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.