Categories Earnings, Finance

American Express (AXP) Q4 profit drops 16% but beats estimates

American Express Company (NYSE: AXP) reported a 16% drop in earnings for the fourth quarter of 2019 due to higher income tax provision. However, the results exceeded analysts’ expectations. Further, the company guided earnings and revenue for the full year 2020 within the consensus estimates range.

Net income dropped by 16% to $1.69 billion or $2.03 per share. Adjusted earnings grew by 17% to $2.03 per share. Revenue rose by 9% to $11.37 billion. Analysts had expected EPS of $2.01 on revenue of $11.36 billion for the fourth quarter.

American Express (AXP) Q4 2019 Earnings Review

The top-line growth was driven by a well-balanced mix of growth in fee, spend and lend revenues, consistent with the high levels of revenue growth the company has delivered for over two years.

The New York-based payment processing company added 11.5 million new proprietary cards during 2019 and continued to deliver solid billings growth.

For fiscal 2020, the company expects revenue growth in the range of 8-10% on a foreign exchange-adjusted basis and earnings of $8.85-9.25 per share. The consensus estimates EPS of $8.98 on revenue growth of 7.40%.

For the fourth quarter, Global Consumer Services Group reported a 10% rise in total revenue net of interest expense primarily driven by higher net interest income, cardmember spending, and card fees. Revenue net of interest expense in Global Commercial Services increased by 7% and that in Global Merchant and Network Services rose by 3%.

Read: Charles Schwab Q4 earnings review

Consolidated expenses increased 9% due to the growth in rewards and other customer engagement costs driven by increased Card Member spending and higher usage of card benefits as well as higher operating expenses.

Billed business rose by 5% to $325.2 billion while the number of cards issued remained virtually unchanged at 114.4 million. The average fee per card increased by 17% to $61 from last year. Average proprietary basic card member spending increased by 5% to $5,237.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

PayPal Holdings (PYPL) Q1 2021 revenue up 31%; earnings beat

PayPal Holdings Inc. (NASDAQ: PYPL) reported stronger-than-expected earnings and revenues for the first quarter of 2021. Shares of the payment service provider gained during Wednesday’s extended trading session soon after

Infographic: How Twilio (TWLO) performed in Q1 2021

Twilio (NYSE: TWLO) reported first quarter 2021 earnings results today. Revenue increased 62% year-over-year to $590 million. GAAP net loss widened to $206 million, or $1.24 per share, compared to

Uber Technologies reports Q1 loss of 6 cents per share: Infographic

Uber Technologies (NYSE: UBER) reported first-quarter 2021 financial results after the regular market hours on Wednesday. The ride-hailing company reported Q1 revenue excluding the UK accrual of $3.5 billion, up

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top