American Express is a technology company that first entered the US credit card market. The company reported higher revenue for the first quarter of 2022 beating analyst forecasts. The company's shares were one of the few that did not experience significant declines in recent times.
- Earnings per share came in at $2.73, a penny short compared to the same as in the same quarter a year earlier. Analysts were expecting earnings of $2.40 per share;
- The company's revenue, excluding interest expense, rose 29% to $11.74 billion. Analysts had expected $11.62 billion.
- For the first quarter of 2022, the company reported net income of $2.10 billion, down from $2.24 billion a year ago;
- Consolidated expenses for the quarter increased nearly 34% to more than $9 billion and were caused by nearly 30% growth in the payment network.
Company CEO Stephen Squeri said that the jump in revenue was due to a global increase in card user spending of nearly 35%. This spending reached record levels in March.
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Create account Try a demo Download mobile app Download mobile app'We added 3 million new proprietary cards in the quarter, as acquisitions of U.S. Consumer Platinum and Gold Cards and U.S. Business Platinum Cards reached all-time highs for the quarter. With travel activity continuing to pick up, we also had record monthly acquisitions for our Delta Cards in March," Squeri reported.
Travel and entertainment spending increased by more than 120% compared to the corresponding quarter of 2021, when the coronavirus pandemic was still weighing on the economy. Squeri also said that in March customer spending on entertainment and travel reached levels seen before the pandemic which could be a positive sign for American Express and the economic climate.
American Express (AXP.US), D1 interval. The company stock has clearly recovered from the massive sell-off caused by the outbreak of the pandemic which shredded the travel industry and caused a large number of people to limit their expenses. Also price managed to largely recover from the declines caused by the Russian attack on Ukraine and has not been seriously affected by the drop in investor sentiment around NASDAQ-listed technology companies. Strong support can be find around 23.6 and 38.2 Fibonacci retracements. Source: xStation5
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