Shares of American Express Co. (AXP) slipped 0.7% in premarket trading, after the credit card and travel services company reported a surprise profit for the second quarter, but revenue that fell more than expected, amid a decline in card member spending and a lower average discount rate. Net income fell to $257 million, or 29 cents a share, from $1.76 billion, or $2.07 a share, in the year-ago period. The FactSet consensus was for a per-share loss of 8 cents. Total revenue dropped 29% to $7.68 billion and missed the FactSet consensus of $8.07 billion. Within AmEx's business segments, consumer services revenue declined 23% to $4.6 billion, merchant and network services revenue fell 41% to $929 million and commercial services revenue declined 30% to $2.3 billion. "Spending volumes, which declined to their lowest point this quarter in April, gradually improved in May and June, with small businesses being the most resilient," said Chief Executive Stephen Squeri. The stock has dropped 22.4% year to date through Thursday, while the Dow Jones Industrial Average has slipped 6.6%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 24, 2020 07:13 ET (11:13 GMT)
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