American Express Gold Card--TheCreditShifu.com

American Express provided an update on the impact of COVID-19 (or Coronavirus) on its financial performance and discussed recent business trends, expectations, and long-term strategies during an Investor Update Call earlier today. 

While Amex performance in January and February of this year showed strong momentum consistent with 2019, American Express now expects its first-quarter revenue growth to be in the range of 2% – 4% on an FX-adjusted basis, and adjusted earnings per share to be in the range of $1.90 to $2.10 (below the FactSet EPS consensus), excluding reserve builds in the quarter. The credit card company cited “softness in spending volumes in the last few days of February… accelerated into March” to be the reason. 

Given the ongoing uncertainty surrounding the duration, magnitude and geographic reach of COVID-19, American Express says it’s “not able to forecast its future financial results beyond the first quarter at this time”. 

“We have a long track record of navigating through uncertain economic periods by focusing on our disciplined operational and strategic execution, our dedicated colleagues, and the deep relationships we have with our customers and partners,” said Stephen J. Squeri, Chairman and Chief Executive Officer.

American Express plans to provide further updates on the COVID-19 impact on its first-quarter earnings call in April.


Leave a Reply
You May Also Like

Will Merchants Soon Refuse to Accept Rewards Credit Cards? (WSJ Article)

A recent article in the Wall Street Journal has drawn attention to several big merchants’ campaign to end the so called “honor all cards” policy of Visa and Mastercard. If a merchant wants to accept say Visa cards, for example, they must accept all Visa cards, regardless of issuer or the type of Visa card. Mastercard has the same rule for merchants who use their network.

Chase Ends AU Bonus on the Sapphire Preferred Card

Chase has been clamping down on churning and trimming benefits and rewards on its Sapphire cards to save money. We recently reported on the 24 month waiting period to get a Sapphire sign up bonus if you have had it before being increased to 48 months, that’s 4 years. And now Chase is bringing in another change.

Maximize Your Cashback: A Sneak Peek of Upcoming 4th Of July 3X Cashback Rakuten Event

Using cashback sites can be a steady source of passive income. At…

Amex Expands Referral Program: Your Chance to Earn Extra Points

American Express has expanded its referral program to include referral options for cards that you don’t actually have. Amex will now let you refer friends and family to any card in the series of cards that you have one of, to the business version of a card you have, or in some cases, even to other cards you have no link to.