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Dec 31, 2019

American Express Q4 2019 Earnings Report

American Express reported Q4 earnings per share of $2.03 and full-year EPS of $7.99.

Key Takeaways

American Express reported a fourth-quarter net income of $1.7 billion, or $2.03 per share, compared to $2.0 billion, or $2.32 per share, the previous year. Total revenues net of interest expense were $11.4 billion, a 9% increase from $10.5 billion a year ago.

Delivered steady, consistent performance in the fourth quarter, marking 10th straight quarter of FX-adjusted revenue growth at or above 8 percent.

Added 11.5 million new proprietary cards during 2019.

Almost 70 percent of new Card Members are choosing fee-based products, helping to drive card fee revenue growth of 17 percent.

Achieved goal of virtual parity merchant coverage in the United States as of year-end 2019.

Total Revenue
$11.4B
Previous year: $10.5B
+8.5%
EPS
$2.03
Previous year: $1.74
+16.7%
Gross Profit
$11.4B
Previous year: $10.5B
+8.5%
Cash and Equivalents
$24.4B
Previous year: $27.8B
-12.1%
Free Cash Flow
$2.77B
Previous year: -$1.69B
-263.5%
Total Assets
$198B
Previous year: $189B
+5.2%

American Express

American Express

Forward Guidance

For 2020, American Express expects revenue growth in the range of 8 to 10 percent on an FX-adjusted basis and earnings of $8.85 - $9.25 per share.

Positive Outlook

  • Product innovation
  • Growth opportunities
  • Consistent performance
  • Continued investments
  • Long runway for steady growth over the long term