Welcome to our dedicated page for American Express Co news (Ticker: AXP), a resource for investors and traders seeking the latest updates and insights on American Express Co stock.
American Express Company (AXP) is a prominent multinational financial services corporation headquartered in New York City. Known for its specialization in payment cards, American Express is one of the most valuable companies globally and a key component of the Dow Jones Industrial Average.
Operating in around 130 countries, American Express provides a variety of charge and credit card payment products to both consumers and businesses. Its business is divided into three main segments: Global Consumer Services, Global Commercial Services, and Global Merchant and Network Services. Beyond its payment cards, the company offers expense management tools, consulting services, and business loans. The merchant payment network operated by American Express is highly profitable, facilitating transactions worldwide.
In recent news, American Express has agreed to sell its subsidiary Accertify to Accel-KKR, a private equity firm. Accertify is known for its advanced fraud prevention, chargeback management, and payment gateway solutions. This strategic move is expected to enable Accertify to accelerate its growth and product innovation in the fraud prevention market as an independent entity.
American Express continues to innovate and expand its services, adapting to the growing digital economy. The company remains committed to providing customers with access to products, insights, and experiences that enrich lives and build business success.
American Express Company (AXP) reported a first-quarter net income of $1.8 billion, or $2.40 per share, down from $2.1 billion and $2.73 per share from the previous year. Total revenues increased by 22% to a record $14.3 billion, driven by higher Card Member spending, which rose 16% on an FX-adjusted basis, and a robust 39% growth in travel and entertainment spending. The company reaffirmed its full-year 2023 guidance for revenue growth of 15%-17% and EPS of $11.00-$11.40. However, provisions for credit losses rose to $1.1 billion, largely due to increased net write-offs and a reserve build, with expenses also climbing by 22% amid greater customer engagement costs.
Billtrust achieved a significant milestone, surpassing $100 billion in payments volume for 2022, reflecting a 35% year-over-year increase. The company’s client base grew to over 2,400 customers, demonstrating enhanced digital adoption amid economic challenges. Key developments included the acquisition of Order2Cash, collaborations with American Express (AXP), and recognition by G2 as a leader in accounts receivable automation software. CEO Sunil Rajasekar highlighted digital transformation's role in increasing cash flow and reducing reliance on traditional payment methods.
The American Express Travel 2023 Global Travel Trends Report reveals a notable increase in travel spending among Gen Z and Millennials, with 50% planning to invest more in travel than in 2022. Key trends include 'set-jetting' inspired by pop culture, a focus on food experiences, and an emphasis on wellness, with 73% prioritizing vacations for mental and physical health. Additionally, 85% of travelers want to immerse themselves in local cultures. The report, based on a survey of 3,000 travelers across multiple countries, indicates an ongoing demand for travel access and personalized itineraries.
American Express Company (NYSE: AXP) will host a live audio webcast to discuss its first-quarter 2023 financial results on April 20, 2023, at 8:30 a.m. (ET). The financial results and presentation materials will be released around 7 a.m. (ET) on the same day and will be accessible on the American Express Investor Relations website. An audio replay will also be available after the call. This call provides an opportunity for investors to gain insights into the company’s financial performance and outlook.
The Board of Directors of American Express Company (NYSE: AXP) has approved the repurchase of up to 120 million common shares, replacing the previous authorization of 36 million shares. This buyback aligns with the company's capital strategy, pending Federal Reserve review. Additionally, a $0.08 or 15% increase in the quarterly dividend has been sanctioned, raising it from $0.52 to $0.60 per share, payable on May 10, 2023. This increase is in line with previous plans announced in the fourth-quarter 2022 earnings release.
On March 7, 2023, Accertify, a subsidiary of American Express (AXP), participated in discussions at the Merchant Risk Council (MRC) Conference in Las Vegas focusing on online purchase returns. With 1 in 6 online purchases being returned and over $22 billion lost to fraudulent returns, the session aimed to address these significant challenges faced by retailers. Accertify introduced its new solution, C.A.R.E., designed to help merchants manage claims and returns effectively. The company highlighted multiple opportunities for attendees to engage with the solution during the conference.
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