(Reuters) - Credit card company American Express Co's second-quarter revenue marginally missed Wall Street estimates as low consumer confidence led to cardmember spending growth moderating.
U.S. retail sales fell in June for the third straight month, the longest run of consecutive drops since 2008, and consumer sentiment is now at its lowest level in seven months as Americans take a dim view of their finances and job prospects.
"Overall cardmember spending rose 7 percent, or 9 percent adjusted for foreign currency translations. That's slower than the increases we've seen in the recent quarters," Chief Executive Officer Kenneth Chenault said in a statement.
Cardmember spending at the company had grown in the double-digit range for the last nine quarters.
The company earned $1.34 billion, or $1.15 per share, compared with $1.33 billion, or $1.10 per share, a year earlier.
The number of outstanding shares fell 4 percent from a year earlier.
Total revenue, net of interest expense, was $7.96 billion, up 5 percent.
Analysts on an average had expected the company to earn $1.09 per share, on revenue of $8.06 billion, according to Thomson Reuters I/B/E/S.
The company, which focuses on high-spending consumers, has the lowest delinquency rate among the large credit card issuers, including JPMorgan Chase
But it set aside $461 million to cover future bad loans, 29 percent more than it provisioned last year, reflecting a larger lending portfolio.
American Express, which lends directly to consumers and also competes with Visa Inc
Shares of the company, which have risen 11 percent in the last year, were down 1 percent in trading after the bell. They closed at $58.29 on Wednesday on the New York Stock Exchange.
(Reporting by Jochelle Mendonca in Bangalore; Editing by Roshni Menon)
