American Express Company

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Apr 252022

Millennials make Amex proud

Gen-Z are doing their best to keep Amex in business, but investors are focusing more on a lowered full year outlook.

  • Amex shares dropped 2.8% on Friday despite the credit card company beating on both ends with EPS of $2.73 on revenues that were up 29% YoY to hit $11.7bn – even after the drop, the stock has outperformed the broader market this year with near 10% gains.
  • Hey, big spender. First quarter revenue was driven largely by a 35% increase in global card-spending, and millennials and Gen-Z led the way, seeing a 56% spike in spending from a year ago. Much of that came from travel, a segment that saw spending jump by 121%, again led by the millennial cohort.
  • FY outlook is where things took a turn; not that it was necessarily bad news, but just wasn’t as good as it could have been. Amex confirmed its FY estimate for revenue growth of up to 20%, slightly missing estimates, but short term investors were hoping that the credit card supplier would hike its outlook.
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American Express

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Jan 262022

Put it on the Amex

Shoppers are clearly making the most of a post-covid world, and American Express is reaping the rewards.

  • Investors went on a shopping spree and sent prices up nearly 9% on Tuesday for their best day since November 2020 – it managed to reverse the effects of an anxious market last week.
  • Spending on its credit cards grew 29% to hit a record high of $368.1bn, even after a fresh round of Omicron lockdowns. It meant Q4 healthily topped expectations with EPS of $2.18 on revenues of $12.15bn.
  • Its FY results beat estimates too, and 2022 should see revenue grow up to 20%. It comes despite facing higher expenses associated with higher wage demands, which other financial companies are also struggling with.
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Chris Herath / Unsplash
Oct 252021

Post-pandemic shopping sprees give American Express a happy Q3

American Express had its best day in almost a year after its third quarter earnings beat expectations and show a recovery in spending after the pandemic.

American Express saw its stock soar 5.41% after the company reported earnings per shares of $2.27 on $10.9 billion in revenue, exceeding expectations of $1.80 in earnings per share and revenue of $10.52 billion. Cardholder spending was on a spree, jumping 19% from the same period the year before to a record high – boosted by the 38% increase in card spending by Millennials and Gen-Z card holders. A rebound in spending on travel, entertainment, and restaurants after the pandemic induced slowdown is to thanks for all the big spenders out there bringing up the numbers. The market is bullish on the future of the stock, with Evercore analysts writing:

Near-term, AXP will continue to benefit from the strong domestic travel and entertainment recovery, though faces increased competition in the affluent co-brand card market.

American Express closed Friday at a new high of $187.08 after seeing its best daily gain in nearly a year.
Jul 272021

Big spenders bring in the $$$

American Express lifted to a record high on Friday, gaining 1.33% to end a five-quarter losing streak after a Q2 revenue jump.

Shares of credit-card issuer popped to record highs of just under $180 on Friday before closing at $173 following second quarter earnings that smashed expectations. American Express reported earnings of $2.80 per share on revenue of $10.24 billion, compared to expectations of $2.66 in earnings per share on $9.48 billion, largely driven by a spike in consumer spending in the post-pandemic world.

The credit card company has seen five quarters of declines, but all areas of the business are recovering. Understandably, American Express found that its cardholders had really upped their spending from a year ago when the world was holed up inside thanks to COVID, and the recovery of travel and entertainment has boosted the card issuer’s earnings.

Demand for our premium, fee-based products continued to be robust, with acquisitions of U.S. Platinum Card Members reaching record levels this quarter. As we look ahead, we are increasingly optimistic that the momentum we’ve generated will continue given the strength we see in our core business, particularly in the U.S., even as the pace of the recovery remains uneven in different regions around the world. Based on current trends, we are confident in our ability to be within the high end of the range of EPS expectations we had for 2020 in 2022.

said Stephen J. Squeri, Chairman and Chief Executive Officer.

Shares are up just over 42% year-to-date.