American Express Logs 3Q Growth Amid Higher Restaurant Spending
22 October 2021 - 10:29PM
Dow Jones News
By Matt Grossman
American Express Co. Friday recorded sales and earnings growth
in the third quarter, and said that restaurant spending has
recovered above pre-pandemic levels.
The New York City-based credit-card company logged third-quarter
earnings of $2.27 a share, a rise from $1.30 a share in the same
three-month period a year earlier. Analysts polled by FactSet had
forecast earnings of $1.80 a share.
Net income climbed to $1.83 billion, compared with $1.07 billion
in last year's third quarter.
Net of interest expense, revenue was $10.93 billion, an increase
from $8.75 billion in the year-ago quarter. Analysts were expecting
revenue of $10.52 billion.
Consumer spending and small-business spending on goods and
services grew 19% over pre-pandemic levels from the third quarter
of 2019, adjusting for foreign-exchange effects. Restaurant
spending increased above pre-pandemic levels as well, a sign that
the travel and entertainment category was recovering, Chairman and
Chief Executive Stephen Squeri said.
The company recorded a benefit from credit-loss-provision
activity of $191 million, an improvement from a provision expense
of $665 million in the year-ago quarter. American Express cited
credit-reserve releases and lower net write-offs.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
October 22, 2021 07:14 ET (11:14 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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