American Express (AXP) reported earnings on Fri 23 Oct 20 (b/o)

** charts after earnings ** 

 

American Express misses by $0.05, reports revs in-line 

Reports Q3 (Sep) earnings of $1.30 per share, $0.05 worse than the S&P Capital IQ Consensus of $1.35; revenues fell 20.4% year/year to $8.75 bln vs the $8.71 bln S&P Capital IQ Consensus.

Consolidated provisions for credit losses were $665 million, down 24 percent from $879 million a year ago. The decrease primarily reflected a modest reserve release2 and lower net write-offs. Total credit reserve levels at the end of the third quarter were generally consistent with second-quarter levels.

"Since the lows of mid-April, we have seen a steady recovery in our overall spending volumes. In fact, we had positive year-over-year growth in non-T&E spending, which has long accounted for the large majority of our overall volumes. While credit remains strong, with delinquencies and net write-offs at the lowest levels we have seen in a few years, we remain cautious about the direction of the pandemic and its impacts on the economy, which is reflected in our reserve levels."