AmEx profit beats estimate on strong US holiday season spending


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AmEx profit beats estimate on strong US holiday season spending

NY-based credit card issuer and financial services company, American Express Co. had reported its fourth-quarter profit on Friday, the 24th of January 2020, which had insanely beaten an analysts’ estimate, lifting its share price just a notch shy of 3 per cent to $135.11 per share, while analysts’ said a strong US retail sales over the holiday quarter alongside a record online holiday sales this year had buoyed up American Express Co.’s fourth-quarterly earnings.

Apart from that, according to the NY-based credit card issuer’s Friday’s (January 24th) fourth quarter earnings’ report, AmEx card spending by its users in the United States rose by more than 6 per cent, while the credit card issuer had scored a rise of 4 per cent in credit card spending overseas, as the company’s long-term effort to flabbergast customers with its reward programs appeared to be paying off.

Besides, over the fourth quarter of 2019, the American Express Co.’s net earnings’ fell to $1.69 billion or $2.03 a share compared to a figure of $2.32 billion or $2.32 per share a year earlier, as the credit card issuer had been spending heavily on its reward programs, however, the credit card issuers net revenue excluding interest expense grew by 9 per cent over Q4, 2019, to $11.37, beating an analysts’ estimate as beforementioned.