American Express Second Quarter Significantly Impacted by COVID-19
As the economy continues to suffer travel and leisure-related losses, one of the losers is American Express (NYSE: AXP), whose sales typically include a large chunk from this category. But the company, which relies heavily on credit-card spending, saw losses in several areas.
Revenue of $7.7 billion decreased 29% year over year. Net income was $257 million and earnings per share were $0.29, down from $2.07 last year but still above estimates. Provisions for losses were $1.6 billion, with a $628 million reserve build. Consolidated expenses decreased 29% as there was less consumer activity and the company had fewer engagements with customers. Spending volume was at its lowest levels in April before increasing in May and then again in June.
Image source: American Express.
Source Fool.com
