Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nyse  >  American Express Company    AXP

AMERICAN EXPRESS COMPANY

(AXP)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

AmEx issues dismal outlook on business travel spending as profit slumps

10/23/2020 | 07:08am EST

Oct 23 (Reuters) - American Express Co on Friday warned that business travel spending would not pick up before early 2022 after reporting underwhelming third-quarter profit due to weak spending on travel and entertainment by its card users.

In what appears to be a shift in strategy, the New York-based credit card issuer also walked back on its cost-cutting target of nearly $1 billion in 2020 and instead decided to spend heavily to add new card customers.

"We have begun to selectively spend in areas critical to rebuilding growth momentum ... we expect our Q2 through Q4 year-over-year OpEx declines will be somewhat less than the $1 billion we initially discussed back in April, which ... was at the moment of peak uncertainty about the future," Chief Financial Officer Jeff Campbell said in a post-earnings conference call with analysts.

Credit card companies have been hit hard as the pandemic-induced recession forces companies to lay off workers and consumers to stay at home.

Spending on AmEx cards fell 19% to $248.7 billion in the quarter, with travel and entertainment related spending sliding 69% from a year earlier.

"We're all consistent in terms of how we feel about business travel, which is probably not going to (pick up) till late 2021, early 2022," Chief Executive Officer Stephen Squeri said on the call with analysts.

AmEx, which has tie-ups with large airlines and hotels and whose largest shareholder is Warren Buffett's Berkshire Hathaway Inc, set aside $665 million in loss provisions during the quarter.

However, that was less than it set aside last quarter, as the outlook for potential defaults improved, with AmEx saying overall spending volumes had shown a "steady recovery" since the lows of mid-April.

Online consumer retail spending was a bright spot for the card issuer during the quarter, clocking a 32% jump over last year.

Non-travel and entertainment spending, which includes online and offline retail spending, inched up 1% from a year ago after adjusting for cross-currency fluctuations.

Quarterly profit fell 40% to $1.07 billion, or $1.30 per share, missing analysts' average estimate of $1.35 per share, according to Refinitiv data, hurt mainly by higher-than-expected expenses.

Total revenue, excluding interest expense, fell 20% to $8.8 billion, but came in ahead of muted expectations.

AmEx shares, which have lost about 16% of their value so far this year, closed down nearly 4% on Friday. (Reporting by Niket Nishant in Bengaluru; Writing by Noor Zainab Hussain; Editing by Shailesh Kuber, Arun Koyyur amd Daniel Wallis)


© Reuters 2020
All news about AMERICAN EXPRESS COMPANY
03:01aAMERICAN EXPRESS : Maryland Filmmaker Receives $25K Grant from American Express
AQ
11/24MASTERCARD INCORPORATED : Chevron Salem Improves Sanitation For Travelers and Le..
AQ
11/24SUITED AVATARS AND DIGITAL OFFICES : traders and bankers embrace VR
RE
11/23AMERICAN EXPRESS : Q3 2020 Pillar 3 Disclosure
PU
11/19AMERICAN EXPRESS : Commits $2.5M to “100 for 100” Program to Invest ..
BU
11/17AMERICAN EXPRESS : Chief Executive Officer to Participate in Goldman Sachs U.S. ..
BU
11/17SHOP SMALL® AND PAY IT FORWARD ON SM : Social Media Endorsements Can be Worth an..
BU
11/16AMERICAN EXPRESS CO : Regulation FD Disclosure (form 8-K)
AQ
11/16AMERICAN EXPRESS : Enhances Early Pay Supply Chain Solution for Large Companies
BU
11/11AMERICAN EXPRESS : Rally fades on Wall Street, pulling indexes below records
AQ
More news
Financials (USD)
Sales 2020 36 173 M - -
Net income 2020 2 667 M - -
Net Debt 2020 - - -
P/E ratio 2020 36,0x
Yield 2020 1,43%
Capitalization 96 938 M 96 938 M -
Capi. / Sales 2020 2,68x
Capi. / Sales 2021 2,42x
Nbr of Employees 64 000
Free-Float 99,9%
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
TrendsBullishBullishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 28
Average target price 110,77 $
Last Close Price 120,39 $
Spread / Highest target 15,5%
Spread / Average Target -7,99%
Spread / Lowest Target -26,9%
EPS Revisions
Managers
NameTitle
Stephen J. Squeri Chairman & Chief Executive Officer
Jeffrey C. Campbell Chief Financial Officer & Executive VP-Finance
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 COMPANY-3.29%96 938
CAPITAL ONE FINANCIAL CORPORATION-15.19%41 788
BAJAJ FINANCE LIMITED0.00%38 970
ORIX CORPORATION-10.33%18 813
SYNCHRONY FINANCIAL-11.22%18 664
ALLY FINANCIAL INC.1.67%11 616