American Express Company (AXP) reported a revenue surge of 33% to $10.2 billion in the second quarter, topping the $9.6 billion average estimate of analysts, as the credit-card giant added a record number of new customers to its tony Platinum card in the period.
AmEx was hit hard by the Covid-19 pandemic, as global travel declined and, as a result, spending on the firm’s cards. The company responded by beefing up rewards on many of its products, including its Platinum card. The move helped the Card fees jump 13% to $1.29 billion in the quarter. The increase in revenue, along with an $866 million release of reserves, aided in net income soar to $2.28 billion, much ahead of analysts’ average estimate of $1.38 billion. AmEx said it’s rebuilding the Platinum card again, increasing the annual fee to $695 from $550 and adding perks tied to private jets and hotel stays.
Attracting new card customers came at a cost in the second quarter, with expenses rising 44% to $7.91 billion, higher than analysts’ $7.62 billion average estimates. AmEx has said it expects to earn $8.85 to $9.25 a share in 2022.
Dow 30 component American Express Company (AXP), and its subsidiaries provide customers and businesses globally with charge and credit payment card products and travel-related services. They look to enrich the lives of their customers and build business success. To learn more about American Express Company (AXP) and to continue to track its progress please visit the Vista Partners American Express Coverage Page.
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