Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  American Express Company    AXP

AMERICAN EXPRESS COMPANY

(AXP)
  Report  
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

AmEx warns of higher costs as it boosts rewards program, shares fall

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/19/2019 | 12:32pm EDT
American Express logo and trading symbol are displayed on a screen at the NYSE in New York

(Reuters) - American Express Co warned of higher operating costs this year as the credit card issuer spends heavily on rewards programs to attract customers in an increasingly crowded market, sending its shares down 2.5% on Friday.

AmEx cards, for long the preferred choice of affluent Americans, is now battling competition from JPMorgan Chase & Co's Sapphire Reserve and Citigroup Inc's Prestige Card.

AmEx has been ramping up its reward programs on its cards and striking partnership deals with a number of companies in a move to attract and retain customers. The company in 2018 renewed a partnership with Delta Air Lines Inc that rewards customers with air miles.

Card reward expenses jumped 9% in the second quarter to $2.65 billion, compared with a 4% rise in the first quarter.

Total expenses rose 9.2% in the quarter ended June 30 from a year earlier, while total revenue rose 8.4% to $10.84 billion.

"Customer engagement cost has been and, I expect, will continue to grow a little faster than our revenues, and so that creates a little bit of margin compression," Chief Financial Officer Jeffrey Campbell said on a post-earnings call with analysts.

AmEx said its loan portfolio increased 10% to $83.2 billion in the quarter, while loan loss provisions grew by about 7%. The company said it now expects provisions to rise 20% this year, down from its earlier forecast of mid-20% range.

The company beat analysts' estimates for quarterly profit, helped by stronger credit card spending, which rose 7% in the United States - the company's biggest market - and 5% globally in the quarter.

The growth in card spending was helped by an economy that is growing steadily, but at a modest pace compared with last year, Chief Executive Officer Stephen Squeri said.


Net income rose 8.5% to $1.76 billion, or $2.07 per share. (https://reut.rs/32ys3vT)

Analysts had expected a profit of $2.04 per share, according to IBES data from Refinitiv.

(Reporting by Bharath Manjesh in Bengaluru; Editing by Sriraj Kalluvila and James Emmanuel)

By Bharath ManjeshR

Stocks mentioned in the article
ChangeLast1st jan.
AMERICAN EXPRESS COMPANY -0.18% 124.4 Delayed Quote.30.51%
BERKSHIRE HATHAWAY INC. 0.29% 301414.01 Delayed Quote.-1.50%
CITIGROUP INC. 1.31% 64.31 Delayed Quote.23.53%
DELTA AIR LINES INC. 0.26% 58.19 Delayed Quote.16.61%
JP MORGAN CHASE & COMPANY 0.90% 108.69 Delayed Quote.11.34%
WELLS FARGO & COMPANY 1.94% 45.25 Delayed Quote.-1.80%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on AMERICAN EXPRESS COMPANY
08/15AMERICAN EXPRESS CO : Regulation FD Disclosure (form 8-K)
AQ
08/14Buffett's Berkshire boosts Amazon.com bet, attracts Ackman
RE
08/14AMERICAN EXPRESS : Q2 2019 Pillar 3 Disclosure
PU
08/06AMERICAN EXPRESS : Vladimir Guerrero Jr. is the Newest Face of American Express ..
PU
08/06AMERICAN EXPRESS : and Newly-acquired Resy Unveil New Culinary Collaborations Ki..
BU
08/02AMERICAN EXPRESS : and Singapore Airlines Extend Partnership to Support SME Grow..
AQ
08/01AMERICAN EXPRESS : buys supplier payment automation platform Acompay
AQ
08/01AMERICAN EXPRESS : Expands Suite of Global Business Payment Capabilities Through..
AQ
07/31AMERICAN EXPRESS : to Acquire Acompay Platform From ACOM Solutions
DJ
07/31AMERICAN EXPRESS : Expands Suite of Global Business Payment Capabilities Through..
BU
More news
Financials (USD)
Sales 2019 43 589 M
EBIT 2019 12 392 M
Net income 2019 6 621 M
Debt 2019 -
Yield 2019 1,31%
P/E ratio 2019 15,6x
P/E ratio 2020 13,8x
Capi. / Sales2019 2,37x
Capi. / Sales2020 2,20x
Capitalization 103 B
Chart AMERICAN EXPRESS COMPANY
Duration : Period :
American Express Company Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends AMERICAN EXPRESS COMPANY
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 30
Average target price 132,24  $
Last Close Price 124,40  $
Spread / Highest target 19,0%
Spread / Average Target 6,30%
Spread / Lowest Target -13,2%
EPS Revisions
Managers
NameTitle
Stephen J. Squeri Chairman & Chief Executive Officer
Jeffrey C. Campbell Chief Financial Officer & Executive Vice President
Marc D. Gordon Chief Information Officer & Executive VP
Charlene Barshefsky Independent Director
Peter F. Chernin Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
AMERICAN EXPRESS COMPANY30.51%103 402
CAPITAL ONE FINANCIAL CORPORATION13.11%40 213
BAJAJ FINANCE26.16%27 040
DISCOVER FINANCIAL SERVICES36.23%25 571
SYNCHRONY FINANCIAL42.50%22 179
ORIX CORPORATION-4.00%17 980