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Mar 31, 2021
American Express Q1 2021 Earnings Report
American Express reported first-quarter revenue of $9.1 billion and earnings per share of $2.74.
Key Takeaways
American Express reported a first-quarter net income of $2.2 billion, or $2.74 per share, compared to $367 million, or $0.41 per share, the previous year. The results included a $1.05 billion credit reserve release.
Card member spending excluding travel and entertainment categories was 11 percent higher on an FX-adjusted basis than it was in the first quarter of 2019.
The company added 2.1 million new proprietary cards during the quarter.
The rollout of the Kabbage digital platform to small business customers began.
More than 14 million merchants have been added to the network through the joint venture in China.
Forward Guidance
American Express views 2021 as a transition year, focused on investments to rebuild growth momentum, with the aspiration of returning to the original EPS expectations for 2020 in 2022.
Positive Outlook
- Continued improvements in the core business.
- Best-in-class credit performance.
- Progress in rebuilding growth momentum.
- Uptick across all categories of travel and entertainment spending in the U.S.
- Confident in roadmap to achieve original EPS expectations for 2020 in 2022.
Challenges Ahead
- Uncertainty regarding the continued spread of COVID-19 and severity of the pandemic.
- Potential deterioration in global economic and business conditions.
- Consumer and business spending not growing in line with expectations.
- Inability of Card Members to pay amounts owed to the company.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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