After a marketing campaign that encouraged more card spending, coming after losing important partnerships, American Express Co. reported a total revenue that beat analysts’ estimates!
According to Bloomberg, the revenue has grown by 2.5 percent, reaching a total of $7.89 billion, surpassing the average estimate, which was $7.79 billion, as revealed by a survey conducted by the source, among 21 analysts.
Surprising results for American express
It seems that this drop was caused by the loss of a deal with Costco Wholesale Corp. However, excluding this from year-earlier results, it seems that the revenue actually increase by 6.2 percent, according to an official statement, released this Wednesday.
Lately, CEO Ken Chenault has seriously reshaped the company’s structure and increased the marketing budgets, in order to improve the loyalty and rewards programs, in their attempt to keep customers after JPMorgan Chase & Co. announced its Sapphire Reserve card, in 2016.
When investments pay off
“The results reflect many of the investments we’ve been making to grow the business,” Mr. Chenault said in an official statement. “The last couple of years have been an important transition period, and we’ve entered 2017 stronger, more focused and more resilient,” he added.
While the lenders climbed 2.3 percent lately, reaching a final value of $77.25 per share, in New York, at 4:21 p.m., the net income fell 13 percent, to $1.23 billion, or $1.34 a share. Previously, in 2016, the net income was $1.43 billion. As for the expense rewards, the increased about 6 percent, reaching $1.81 billion.
