American Express: Q3 earnings beat expectations

(CercleFinance.com) - American Express has reported a better-than-expected quarterly profit on Friday as the US credit card issuer benefited from increased consumer and small business spending amid a recovering economy.


The New York-based group reported Q3 net income of 1.8 billion dollars, or 2.27 dollars per share, compared with 1.1 billion dollars (1.30 dollar per share) a year ago.

Net sales rose 25% to 10.9 billion dollars over the period.

By way of comparison, analysts were anticipating EPS of 1.80 dollar on sales of 10.5 billion dollars, significantly beaten by the group.

In its statement, AmEx notes that spending by its cardholders, both individuals and businesses, increased by 19% over the quarter.

The group also highlights its strategy to improve its positioning with small businesses and to appeal to customers from the "Millenial" and "Z" generations, whose spending on AmEx cards has jumped 38% from their 2019 levels.

American Express shares were up nearly 2% in pre-market trading on Friday.


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