Shares of American Express (NYSE: AXP) plummeted more than 6% in last Friday’s morning trading.
Well, the iconic charge card company issued its second-quarter results, and while revenue and earnings growth were strong, rising expenses worried investors. Amex reported revenue net of interest expense of $19.6 billion, 10% higher than the same period a year ago. That was driven by higher card member marketing expenses — up about 9% — during the quarter.
Earnings per share rose 11%, to $4.53, about $0.12 higher than analysts expected. But there was one thing the market really didn’t like. The company said expenses grew 12% year over year in the quarter to $14.5 billion, from $12.9 billion a year ago.