American Express (NYSE: AXP) reported Q2 EPS of $1.47, $0.03 better than the analyst estimate of $1.44. Revenue for the quarter came in at $8.3 billion versus the consensus estimate of $8.2 billion.

“We started the year strong and accelerated the pace this quarter by continuing to execute a strategy that is transforming our consumer, commercial and merchant businesses,” said Kenneth I. Chenault, chairman and chief executive officer.

“Our transition started in 2015 when we renewed several long term cobrand relationships and moved away from others that no longer made economic sense. It continued with aggressive initiatives to lower operating expenses and increase investment spending in businesses with the most attractive growth potential. While each of those moves suppressed short-term results, we believed they would put us in a stronger position for the longer term. They have.

“There were many signposts of progress this quarter: adjusted revenue growth accelerated to 8 percent; adjusted Card Member spending was up 8 percent and spread across business units and geographies3; healthy loan growth and credit quality; strong new card acquisition – particularly among affluent consumers in the U.S.; and continued progress on reducing operating expenses. The work is not complete, but we’re now moving forward with a stronger foundation and a blueprint for growth in the years ahead.

“Beyond any one quarter, though, we’ve been focused on emerging from the transition with a stronger, more diversified mix of businesses. We have built a leaner organization with:

• A consumer business generating strong growth internationally and in the U.S. where we have strengthened our product offerings in the premium sector.
• A lending business that has broadened our Card Member relationships and successfully balanced growth with strong credit quality.
• An industry-leading presence with small and medium-sized enterprises that use our cards for their payment needs.
• A larger merchant network that accommodates a greater share of our Card Member spending.
• A card acquisition engine that has been successfully redesigned for the digital age.
• A more agile technology infrastructure that brings customized products and services to market more quickly and efficiently.

“While this work was underway, we maintained a strong balance sheet and results from the Federal Reserve’s recent stress test show a resilient business model. We’re pleased that the Fed approved our plan to return an additional $4.4 billion to shareholders over the next four quarters through share repurchases.

“Now that we are halfway through the year, we are confident that we will deliver earnings per share between $5.60 and $5.80 in 2017.”

For earnings history and earnings-related data on American Express (AXP) click here.