NYSE$AXP

American Express CO · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

American Express reported strong fourth-quarter revenue increase driven by record card member spending.

American Express reported a strong fourth quarter with a 30% increase in revenue to $12.1 billion. Earnings per share were $2.18, and the company raised its long-term aspiration with a new growth plan.

  • Delivered strong fourth-quarter and full-year results that exceeded expectations.
  • Reached record levels of Card Member spending.
  • Maintained customer retention and satisfaction above pre-pandemic levels.
  • Increased new Card acquisitions and grew loan balances.

Headline financials

Total Revenue

$12.1B

Previous: $9.35B+29.9%
EPS (adj)

$2.18

Previous: $1.76+23.9%
Capital Expenditures

$471M

Previous: $436M+8.0%
Free Cash Flow

$4.54B

Previous: $3.06B+48.1%
Net Income

$1.72B

Previous: $1.44B+19.5%
Gross Profit

$7.93B

Previous: $9.35B-15.2%
Cash & Equivalents

$21.5B

Previous: $33B-34.8%
Total Assets

$189B

Previous: $191B-1.5%
Stock-Based Comp

$74M

Previous: $74M+0.0%

Revenue & EPS history

American Express · Revenue · Quarterly

$12.1B

Q4 2021+29.9%vs Q4 2020
Beat estimate in 9 of 16 quarters(56%)
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 expects to generate elevated levels of revenue growth in 2022 in the range of 18 to 20 percent and earnings per share of $9.25 to $9.65. Longer term, as the economy reaches a steady state, their aspiration is to achieve revenue growth in excess of 10 percent and EPS growth in the mid-teens.

Tailwinds

  • Generate elevated levels of revenue growth in 2022 in the range of 18 to 20 percent.
  • Earnings per share of $9.25 to $9.65.
  • Achieve revenue growth in excess of 10 percent longer term.
  • Achieve EPS growth in the mid-teens longer term.
  • Increase the regular quarterly dividend on its common shares outstanding by approximately 20 percent, from 43 cents to 52 cents per share beginning with the first quarter 2022.

Headwinds

  • The extent and duration of the effect of the pandemic on the economy.
  • Inflation, consumer confidence, consumer and business spending.
  • Continued stress on businesses due to containment measures, operational changes, supply chain issues and staffing shortages.
  • Impacts related to new or renegotiated cobrand and other partner agreements.
  • Impact of regulation and litigation.

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 2021

Historical avgQ4 2021

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro