American Express Co .. (AXP) – Get report It posted a windfall gain in the second quarter on Friday, but revenue fell by almost a third as consumer spending collapsed during the peak of the coronavirus pandemic.
American Express said earnings for the three months ending June were set at 29 cents a share, 86% less than the same period last year, but beating Street’s consensus forecast of a loss of 11 cents a action. The group’s revenue, American Express said, fell 30% from last year to $ 7.675 billion and analysts’ forecast of an account of $ 8.155 billion was missed.
American Express also said it would set aside $ 628 million to cover what was expected to be a wave of consumer defaults in the coming months, taking its overall loss provisions to around $ 1.6 billion.
“While our second-quarter results reflect the challenges of the current environment, we remain confident that our strategy to navigate this period of uncertainty is correct,” said CEO Stephen Squeri. “Our clients continue to be committed to our products and services; we have a productive and dedicated workforce; our capital and liquidity levels remain strong; And we continue to focus on the areas most critical to our long-term growth.
“Spending volumes, which decreased to their lowest point this quarter in April, gradually improved in May and June, with small companies being the most resilient,” he added. “We feel good about our efforts to support our clients as they navigate unexpected financial challenges during these unprecedented times.”
American Express shares were marked 1.9% lower in early trading immediately after earnings release to switch hands to $ 94.88 each, a move that extends the year-to-date decline to around 24%.
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