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Sep 30, 2021
American Express Q3 2021 Earnings Report
American Express reported strong third-quarter results driven by accelerating momentum in its core business and outstanding credit performance.
Key Takeaways
American Express reported a strong third quarter with net income of $1.8 billion, or $2.27 per share. Revenues jumped 25% year-over-year, driven by growth in Card Member spending and a rise in the average discount rate.
Revenues increased by 25% compared to the previous year.
Card Member spending accelerated, reaching record highs for the third quarter.
Spending by Millennial and Gen Z Card Members grew 38% above Q3 2019 levels.
Acquired 2.6 million new proprietary cards in Q3.
Forward Guidance
The company remains confident in its ability to be within the high end of the range of the EPS expectations they had for 2020 in 2022.
Positive Outlook
- Economies continuing to re-open
- Vaccination rates increasing
- Travel restrictions lifting
- Consumers continuing to spend online and on Goods & Services
- The general public feeling comfortable traveling, shopping and dining out again
Challenges Ahead
- Uncertainty regarding the continued spread of COVID-19 (including new variants)
- A deterioration in global economic and business conditions
- Consumer and business spending not growing in line with expectations
- An inability or unwillingness 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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