Lower Manhattan’ AmEx beats profit estimates as spending rebounds from pandemic lows

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Lower Manhattan’ AmEx beats profit estimates as spending rebounds from pandemic lows

American Express Co., the New York City-headquartered multinational financial services corporation largely focused on credit cards, had blown past second-quarter profit estimates on Friday, mostly buoyed up by a sharp shoot-up in global consumer spending, in particular in tourism and leisure activities, as more people appeared to have booked tourism packages following an acceleration in vaccination campaign.

Aside from that, latest upbeat quarterly earnings’ report for the American credit card giant, AmEx, came forth a week after the US Commerce Department had said in a statement that US Consumer Spending, the lifeblood of US economy accountable for roughly two-thirds of entire economic activities, had witnessed a double-digit growth during fiscal second quarter of the year, as a robust reopening of US economy fared well for the credit card behemoth as anticipated.

Meanwhile, followed by the reveal of AmEx’s quarterly earnings’ report, the company CFO (Chief Financial Officer) Jeff Campbell was quoted saying that the US consumers had ‘rocketed ahead on travel,’ as spending on travel and entertainment activities had sharply clawed back to 98 per cent of pre-pandemic capacity.

AmEx handily beats Q2, 2021 profit estimates, shares soar

Concomitantly, as a robust demand for premium and fee-based products had pushed the number of AmEx Platinum card holders to a record level, American Express Co’s net income surged $2.80 per share or to $2.28 billion during the quarter that ended on June 30, wildly beating a Wall Street estimate of $1.67 a share, IBES data from Refinitiv had unleashed, while AmEx’s total revenue rocketed 33 per cent to $10.24 billion excluding interest expenses.

In tandem, shares’ prices of American Express Co. gained as much as 4.63 per cent on Friday to $173.43 apiece after surging nearly 4 per cent in pre-market trading.