American Express (NYSE:AXP) earnings for the financial services company’s second quarter of 2020 have AXP stock dipping lower on Friday. That’s despite its diluted earnings per share of 29 cents beating out Wall Street’s estimate for a loss of 11 cents. Unfortunately, the company’s revenue of $7.68 billion is well below analysts’ estimates of $8.15 billion.
Let’s take a deeper dive into the most recent American Express earnings report below.
- Diluted per-share earnings are down 86% from $2.07 in the same period of the year prior.
- Revenue for the quarter comes in 29% lower than the $10.84 billion reported in the second quarter of 2020.
- The American Express earnings report also has it bringing in a net income of $257 million.
- That’s an 86% drop compared to the company’s net income of $1.76 billion from the same time last year.
Stephen Squeri, chairman and CEO of American Express, said this about the earnings.
“While our second quarter results reflect the challenges of the current environment, we remain confident that our strategy for navigating this period of uncertainty is the right one. Our customers continue to be engaged with our products and services; we have a productive and dedicated workforce; our capital and liquidity levels remain strong; and we continue to focus on those areas most critical to our long-term growth.”
American Express doesn’t include guidance in its earnings report. Nevertheless, we know what Wall Street is estimating. That includes diluted EPS of $2.64 on revenue of $37.62 billion for the year.
AXP stock was down 1.1% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.