American Express shares fell nearly 4.4% to $169.36 after the company reported worse-than-expected revenue growth for Q2. The post Amex Down 4.4% as Revenue Misses Expectations appeared first on Tokenist.
Amex Network Volumes Miss Estimates
Shares of American Express dipped sharply on Friday after the payments card issuer reported disappointing financial results for Q2 2023 a day earlier. The stock was down 4.4% at the time of writing, sitting at $169.36 per share.
The dip comes as investors jumped ship following Amex’s earnings figures that showed slower-than-expected revenue growth in the three months while spending growth on the company’s cards hit the lowest level in over two years. Revenue stood at $15.05 billion in the quarter, compared to the estimated $15.48 billion. Furthermore, American Express’s network volumes rose 8%, marking the weakest gain since Q1 2021 and below Wall Street estimates.
Overall, the total network volume climbed to $426.6 billion. While that was a record high for the Buffalo, New York-based financial technology giant, it was still below the consensus estimates of $441.6 billion. Meanwhile, travel and entertainment spending surged by 14% during the period, with the bulk of that increase coming from restaurants and dining categories.
“You saw an increase during the pandemic in people taking deliveries from restaurants. As people returned to in-person dining, they haven’t necessarily abandoned that.”
– Amex CFO Jeff Campbell said.
Consumer Spending Habits and the Pandemic
Then in 2021, the ramifications of Covid-19 were still evident in consumer spending 2021, but businesses and consumers started to adapt. d
Do you think consumer spending will resemble 2019 habits once inflationary pressures cool down? Let us know in the comments below.