As per reports, American Express Co (AXP) released strong quarterly earnings, beating market estimates. The business card for companies is improving as government incentives and vaccine rollouts point at economic recovery, assisting the industry to recover from a pandemic-driven low in non-essential consumer spending last year.
“We view 2021 as a transition year, where we are focused on making investments to rebuild growth momentum in our core business, stated Chief Executive Officer Stephen Squeri.
The credit card giant reported a benefit of $675 million from the release of $1.05 billion from its loan-loss reserves. Net income increased to $2.74 per share from 41 cents per share a year earlier, ahead of analysts’ estimates of $1.61 per share. The company’s total revenue declined 12% to around $9 billion, excluding interest expense. Entertainment and travel-related spending on American Express cards, dropped 50% after adjusting for foreign exchange fluctuations as people continued to stay at home. Consumer spending on goods and services on AmEx cards increased 6% from a year earlier, on a forex adjusted basis.
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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