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AMEX beats Wall Street expectations in Q3

By Robert Davis

20:25, 22 October 2021

American Express logo in ivy
American Express - Photo: Shutterstock

Shares of American Express (AMEX) were up 5.37% on Friday to $187 (£135.94) after the company announced its fiscal Q3 earnings beat Wall Street's estimates.

Over the last month, AMEX shares have gained more than 7.8% in value. They’ve increased by nearly 30% in the last six months and are up 58.4% so far this year.

Earnings details

According to AMEX’s Q3 earnings statement, the company brought in $1.8bn in revenue compared to the $1.07bn it brought in during Q3 2020.

This revenue translated to EPS of $2.27 compared to the $1.30 per share AMEX paid out last year.

Five analysts at MarketBeat estimated AMEX would report EPS of $1.72, meaning the company posted a surprise factor of more than 25%.

AMEX said in its earnings statement that the increase in revenue was primarily driven by an increase in network volumes when compared to 2020.

However, the company’s total expenses also increased to $2.6bn, up 29% from last year because of higher member spending.

AMEX CEO Stephen Squeri described the company’s Q3 performance as one that reflects “accelerating momentum in our core business and outstanding credit performance, enabled by the strategic decisions we’ve made over the last several years.”

“We’re operating from a position of strength, and we see more opportunity ahead to drive sustainable, long-term growth. With the progress we’ve made against our key priorities this year, we remain confident in our ability to be within the high end of the range of the EPS expectations we had for 2020 in 2022,” Squeri said.

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389.39 Price
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227.91 Price
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Short position overnight fee 0.0032%
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Spread 0.14


The company expects to see solid growth in the future driven primarily by the investments its made in attracting young consumers to their products.

Spending by Millennial and Gen Z card members grew 38% above Q3 2019 levels…We acquired 2.6 million new proprietary cards in Q3, with acquisitions of our US consumer and small business Platinum and Gold cards reaching all-time highs while our card member retention and satisfaction metrics are better than pre-pandemic levels,” Squeri said.

Read more: American Express to launch new online bank payment service

The difference between stocks and CFDs:

The main difference between CFD trading and stock trading is that you don’t own the underlying stock when you trade on an individual stock CFD.

With CFDs, you never actually buy or sell the underlying asset that you’ve chosen to trade. You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional stock trading you enter a contract to exchange the legal ownership of the individual shares for money, and you own this equity.

CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional stock trading, you buy the shares for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks.

CFDs attract overnight costs to hold the trades, (unless you use 1-1 leverage) which makes them more suited to short-term trading opportunities. Stocks are more normally bought and held for longer. You might also pay a stockbroker commission or fees when buying and selling stocks.


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