American Express' CEO Just Said He's Seeing "Big Pent-Up Demand" for Travel
Warren Buffett's favorite credit card company American Express (NYSE: AXP) held its third quarter earnings call last Friday, and results were somewhat surprising. Revenue was down 20.4% year-over-year, but that actually beat analyst expectations. However, American Express' earnings per share of $1.30 missed expectations of $1.35, and the stock sold off after the announcement.
The results run somewhat counter to what we've seen from a lot of companies in the second and third quarters, during which revenue decreases were offset by better profitability as many companies saved on travel and marketing expenses.
However, American Express management has actually decided to zig while others are zagging, ramping up marketing spending on new initiatives even amid the downturn. Here's why.
Source Fool.com
