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Record Credit Card Spending Helps American Express Top Revenue, Profit Estimates

1. AXP reported Q2 EPS of $4.08, exceeding analyst forecasts. 2. Revenue increased 9% year-over-year to $17.86 billion. 3. Net interest income rose 12% but was slightly below consensus. 4. Record Card Member spending reached $416 billion, up 7% from last year. 5. Full-year projections remain unchanged, indicating steady growth expectations.

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FAQ

Why Bullish?

The positive earnings surprise and robust spending suggest strong consumer demand. Historically, similar earnings beats have led to upward stock price adjustments.

How important is it?

Positive quarterly results directly influence stock performance, reflecting business health. The reaffirmation of growth targets boosts investor confidence.

Why Short Term?

Immediate market reactions to earnings reports typically occur within days. AXP is expected to benefit in the near term from strong performance metrics.

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