American Express (AXP) beat the Q4 estimates, reporting an EPS of $1.75 on revenue of $9.35 billion, beating estimates at $1.26 a share. Consumer service revenue dropped 14% to $5.5 billion. Commercial services revenue decreased 20% to $2.7 billion. Merchant and network services revenue also dropped 21% to $1.2 billion.
“While we are still seeing impacts of the COVID-19 pandemic on our business, trends continued to steadily improve in the fourth quarter,” “Card Member spending has continued to recover, and non-travel and entertainment spend exceeded pre-COVID levels for the second consecutive quarter.” stated CEO Stephen Squeri.
American Express is more dependent on travel and entertainment revenue in comparison to other payment giants like Mastercard and Visa. Business travel in particular is a major component of its revenue stream. As a result, the pandemic has been a major setback for American Express stock, along with the Biden administration re-imposed travel restrictions from some countries. However as per the Global Business Travel Association, with vaccine rollouts, there is hope that business travel and meetings will pick up in the second half of 2021.
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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