AmEx’s Rosier Pandemic View Lets It Ease Up on Cost-Cut Push
- The shares drop on higher expenses than analysts predicted
- Will fall short of $3 billion target by ‘little bit,’ CFO says
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American Express Co. shares dropped after the company walked back an ambitious cost-cutting goal because it’s spending more to attract new cardholders, arguing that consumers are holding up well against the pandemic’s economic toll.
The card company now expects to cut “a little bit” less than the $3 billion target set in April, Chief Financial Officer Jeff Campbell said Friday in an interview. Higher marketing and promotional costs left expenses down 14% in the third quarter, a smaller drop than analysts predicted.