American Express (AXP) announced its 2021 Q4 earnings Tuesday, revealing the company’s net income has increased to $1.72 billion up from $1.4 billion in Q4 of 2020, a 20% increase.
The company’s quarterly revenue rose 30% to $12.15 billion, up from $9.35 billion. According to the press release, the increase in revenue is mostly attributed to a rise in cardmember spending. Revenue is up 17% for the full year, reported at $42.38 billion, up from $36.1 billion in 2020.
The company outperformed Zacks Investment Research’s Q4 diluted earnings per share (EPS) estimate of $1.78. American Express reported its EPS increased from $1.76 per share to $2.18 in Q4, a 24% increase from the previous year.
In the press release, Stephen J. Squeri, Chairman and Chief Executive Officer of American Express said, “We delivered strong fourth-quarter and full-year results that exceeded our expectations thanks to the efforts of our dedicated and talented colleagues.”
In the statement, Squeri indicated he expects revenue to continue growing in 2022 due to the implementation of a new growth plan “that will enable [American Express] to continue investing at high levels in [its] customers, brand, and talent.”
