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American Express Posts Strong Q3 Earnings As Card Spending Increases

By John F. Heerdink, Jr.

As per reports, American Express Company (AXP) released third-quarter earnings reporting earnings per share of $2.27 a share on revenue of $10.9 billion, exceeding analysts’ estimates of $1.80 a share on revenue of $10.52 billion. Net income in the period was $1.83 billion versus $1.07 billion a year earlier. Provisions for credit losses were a net of $191 million, lower than the provision expense of $665 million a year earlier. Cardholder spending increased to a record high and was up 19% from the third quarter of 2019. Spending by Millennial and Gen-Z cardholders increased 38% from the third quarter of 2019.

“We’re operating from a position of strength, and we see more opportunity ahead to drive sustainable, long-term growth. With the progress we’ve made against our key priorities this year, we remain confident in our ability to be within the high end of the range of the EPS expectations we had for 2020 in 2022,” stated Chairman and CEO Stephen Squeri.

Dow 30 component American Express Company (AXP) and its subsidiaries provide customers and businesses with charge and credit payment card products and travel-related services globally. 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.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

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(Read Original Story: American Express Posts Earnings and Revenue Beats. The Stock Moves Higher. in Barron's)


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