NYSE$AXP

American Express CO · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

American Express's Q3 2020 earnings were reported, showing a decrease in revenue and earnings per share compared to the previous year.

American Express reported a third-quarter net income of $1.1 billion, or $1.30 per share, compared to $1.8 billion, or $2.08 per share, a year ago. Total revenues net of interest expense were $8.8 billion, a 20 percent decrease from $11.0 billion a year ago. The quarter primarily reflected declines in Card Member spending and the average discount rate compared to the prior year.

  • Overall spending volumes have steadily recovered since mid-April.
  • Positive year-over-year growth was seen in non-T&E spending.
  • Voluntary attrition rates on proprietary products remain lower than last year.
  • Customer acquisition activities have selectively increased while continuing to invest for the long term.

Headline financials

Total Revenue

$8.75B

Previous: $11B-20.4%
EPS (adj)

$1.30

Previous: $2.08-37.5%
Capital Expenditures

-$1.04B

Previous: -$1.21B+14.2%
Free Cash Flow

$31M

Previous: $541M-94.3%
Net Income

$1.07B

Previous: $1.76B-38.9%
Operating Income

$4.7B

Previous: $6.5B-27.8%
Gross Profit

$8.09B

Previous: $10.1B-20.0%
Cash & Equivalents

$33B

Previous: $24.3B+36.1%
Total Assets

$187B

Previous: $194B-3.6%
Stock-Based Comp

$66M

Previous: $61M+8.2%

Revenue & EPS history

American Express · Revenue · Quarterly

$8.75B

Q3 2020-20.4%vs Q3 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

American Express · $13.5B total across 3 segments · Q3 2023

  • U.S. Consumer
    $7.2B+16.1%
  • Commercial
    $3.7B+5.7%
  • International Cards
    $2.6B+13.0%

Forward guidance

American Express recognizes that the road ahead continues to be uncertain, but they are confident that the steps they are taking will enable them to exit this crisis in a strong position and maximize value for their stakeholders over the long term.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.1%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+3.3%

Avg return

30 days after

45%

33 / 73 earnings

Positive

+11.2%

Q3 2016

Best reaction

-12.6%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.8%-5.1%-6.3%
Q4 2025-1.1%-1.3%-13.8%
Q3 2025+7.2%+8.9%+10.5%
Q2 2025+0.3%-0.3%+6.0%
Q1 2025-0.6%-0.2%+18.5%
Q4 2024-1.4%-3.3%-9.4%
Q3 2024-5.3%-5.1%+0.4%
Q2 2024-1.8%-3.3%+1.0%
Q1 2024+7.1%+9.9%+11.6%
Q4 2023+6.8%+6.7%+14.1%
Q3 2023-3.4%-4.1%+8.6%
Q2 2023-5.3%-5.3%-9.5%
Q1 2023-0.7%-5.4%-7.3%
Q4 2022+10.8%+11.4%+11.8%
Q3 2022-0.6%+3.1%+7.1%
Q2 2022+2.4%+1.0%+8.0%
Q1 2022-0.9%-4.4%-17.5%
Q4 2021+10.3%+11.4%+18.5%
Q3 2021+2.7%+0.3%-2.2%
Q2 2021+1.0%-0.5%-6.5%
Q1 2021+2.2%+3.7%+6.6%
Q4 2020-5.8%-4.0%+13.1%
Q3 2020-7.5%-12.6%+7.4%
Q2 2020-0.9%+0.0%-0.5%
Q1 2020+3.2%+16.6%+8.3%
Q4 2019-0.6%+0.2%+2.7%
Q3 2019-0.0%-2.2%+1.4%
Q2 2019-1.9%-0.4%-2.9%
Q1 2019+0.5%+2.0%+6.5%
Q4 2018+1.1%+0.4%+8.0%
Q3 2018+2.3%+0.0%+4.9%
Q2 2018-1.0%+0.1%+1.9%
Q1 2018+9.1%+7.2%+7.6%
Q4 2017-2.7%-2.8%-3.9%
Q3 2017+0.2%+0.8%+2.2%
Q2 2017-0.2%-0.6%-0.2%
Q1 2017+5.6%+6.1%+1.3%
Q4 2016-1.7%-0.1%+2.9%
Q3 2016+11.2%+11.7%+18.2%
Q2 2016-1.1%+0.3%+2.1%
Q1 2016+3.2%
Q4 2015-12.6%
Q3 2015-5.8%
Q2 2015-2.5%
Q1 2015-3.0%
Q4 2014-3.3%
Q3 2014-3.0%
Q2 2014-1.0%
Q1 2014+0.2%
Q4 2013+3.1%
Q3 2013+6.6%
Q2 2013-5.4%
Q1 2013+0.7%
Q4 2012+1.6%
Q3 2012-1.7%
Q2 2012-4.2%
Q1 2012-1.0%
Q4 2011+2.9%
Q3 2011+5.5%
Q2 2011-3.5%
Q1 2011-1.2%
Q4 2010-0.9%
Q3 2010+3.2%
Q2 2010-1.4%
Q1 2009-7.3%
Q1 2010+1.0%
Q4 2009+0.2%
Q3 2009-2.1%
Q3 2008-2.1%
Q4 2007+1.5%
Q2 2008+1.5%
Q2 2009+1.5%
Q4 2008+1.5%

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