NYSE$AXP

American Express CO · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

American Express reported Q4 2020 earnings with a revenue of $9.4 billion and EPS of $1.76.

American Express reported a net income of $1.4 billion, or $1.76 per share, for the fourth quarter of 2020, compared to $1.7 billion, or $2.03 per share, the previous year. The company's revenue was $9.4 billion, a decrease of 18 percent from the prior year. Card Member spending has continued to recover, and non-travel and entertainment spend exceeded pre-COVID levels for the second consecutive quarter.

  • Card Member spending has continued to recover.
  • Non-travel and entertainment spend exceeded pre-COVID levels for the second consecutive quarter.
  • Disciplined approach to risk management enabled the company to maintain best-in-class credit performance.
  • The company continued to expand its merchant network.

Headline financials

Total Revenue

$9.35B

Previous: $11.4B-17.7%
EPS (adj)

$1.76

Previous: $2.03-13.3%
Capital Expenditures

$436M

Previous: $431M+1.2%
Free Cash Flow

$3.06B

Previous: $2.77B+10.8%
Net Income

$1.44B

Previous: $1.69B-15.1%
Gross Profit

$9.35B

Previous: $11.4B-17.7%
Cash & Equivalents

$33B

Previous: $24.4B+34.8%
Total Assets

$191B

Previous: $198B-3.5%
Stock-Based Comp

$74M

Previous: $66M+12.1%

Revenue & EPS history

American Express · Revenue · Quarterly

$9.35B

Q4 2020-17.7%vs Q4 2019
Beat estimate in 7 of 16 quarters(44%)
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

While we remain cautious about the pace of recovery, we are focused on achieving our aspiration of being back to the original EPS expectations we had for 2020 in 2022, and for the company to be positioned to execute on its financial growth algorithm.

Tailwinds

  • Continuing to enhance value propositions and refreshing premium products in our card businesses.
  • Scaling cash flow and supplier payment solutions in our commercial business.
  • Continuing to increase merchant coverage globally.
  • Investing heavily in new and expanded digital capabilities across our businesses.

Headwinds

  • Managing through the effects of the pandemic.
  • Uncertainty regarding the continued spread of COVID-19 (including new variants) and severity of the pandemic and the availability and widespread use of effective treatments and vaccines.
  • A further deterioration in global economic and business conditions.
  • Consumer and business spending not growing in line with expectations, including T&E spending not rebounding to 2019 levels by the end of 2021.
  • An inability or unwillingness of Card Members to pay amounts owed to the company.

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 Q4 2020

Historical avgQ4 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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