American Express Co (NYSE: AXP) topped first quarter profit estimates as customer spending doubled on entertainment and travel with the ease in Covid-19 related restrictions.
Travel and entertainment spending, which includes flights, hotels and restaurants, rose 121% from the previous year.
Spending on goods and services, which is the biggest category for AmEx, rose 21%.
Increased spending
With Covid-19 restrictions being relaxed and Americans willing to spend on traveling, shopping, and eating out, consumer spending in the US has risen.
Shares of AmEx were down nearly 2% in morning trading as company’s expenses rose 34% to $9.06 billion in the quarter.
Total revenue of the company excluding interest expense increased 29% to around $11.74 billion in the quarter. Net income fell 6% to $2.1 billion, or $2.73 per share, compared to expectations of $2.44 per share, according to Refinitiv IBES data.
Picture Credits: Reuters
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