American Express Reaffirms 2015-2017 Financial Outlook
September 18 2015 - 11:23AM
Business Wire
American Express Company (NYSE:AXP) today reaffirmed the
company’s financial outlook for 2015, 2016 and 2017.
In remarks prepared for a presentation at the Barclays Global
Financial Services Conference here today, Chief Financial Officer
Jeffrey C. Campbell said, “For the full year, our 2015 EPS outlook
remains unchanged, as we continue to expect EPS to be flat to
modestly down. We also believe our outlook to return to positive
earnings per share growth in 2016 and within our target range of
12-15% in 2017 remains appropriate. As you recall, this outlook
does not contemplate the impact of any restructuring charges or
other contingencies.”
Echoing comments made earlier this year at the company’s
Investor Day, Mr. Campbell reiterated, “We will likely have more
unevenness in our performance from quarter to quarter than has been
typical of our business.”
Mr. Campbell also said, “We believe that our core underlying
earnings performance this quarter will be generally consistent with
the financial outlook framework that we first shared with you at
our Investor Day in March. Although after adjusting for FX, we do
expect the billings growth rate this quarter to be in line with or
modestly below what we saw in the second quarter. In addition, we
expect revenue growth this quarter to be slower than the second
quarter revenue growth rate, adjusting for FX and business
travel.”
Mr. Campbell said, “As we have noted on many occasions, we have
confidence in the flexibility of our business model, as
demonstrated by our results the last few years, which gives us the
ability to use different levers – revenue growth, operating expense
leverage, and use of our capital strength and share repurchases –
to drive our financial performance.”
A live audio webcast is available to the general public through
the American Express Investor Relations website at
http://ir.americanexpress.com. An audio replay of the presentation
will be available after the event at the same website address.
About American Express
American Express is a global services company, providing
customers with access to products, insights and experiences that
enrich lives and build business success. Learn more
at americanexpress.com and connect with us
on facebook.com/americanexpress,
foursquare.com/americanexpress, linkedin.com/company/american-express,
twitter.com/americanexpress,
and youtube.com/americanexpress.
Key links to products and services: charge and credit cards,
business credit cards, Plenti rewards program, travel services,
gift cards, prepaid cards, merchant services, corporate card and
business travel.
Cautionary Note Regarding Forward-looking Statements
This release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
which are subject to risks and uncertainties. The forward-looking
statements address the Company’s expected business and financial
performance, including management’s outlook for 2015-2017, among
other matters. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
on which they are made. The Company undertakes no obligation to
update or revise any forward-looking statements. Factors that could
cause actual results to differ materially from these
forward-looking statements, include, but are not limited to, the
following:
- the Company’s ability to achieve flat
to modestly down EPS growth for the full year 2015 and positive
earnings per share growth in 2016, as well as the Company’s
earnings expectations for the third quarter of 2015, which will
depend in part on discount rate, loan growth, credit and other
trends continuing, the Company’s tax rate remaining in line with
recent performance, the impact of new regulations in the European
Union and the court’s order in the DOJ case in the marketplace, the
impact of any potential restructuring charges or other
contingencies, the ability to realize benefits from the Company’s
2014 restructuring actions, the behavior of Card Members and their
actual spending patterns, the trajectory of volume decline and card
acquisition related to the Costco U.S. relationship, currency and
interest rate fluctuations, the timing and size of the Company’s
investments to attract Card Members and in other growth
initiatives, as well as the Company’s success in implementing its
strategies and business initiatives including growing profitable
spending through proprietary, co-brand and network products,
increasing penetration among corporate clients, expanding its
international footprint, growing reloadable prepaid, loyalty
coalitions and marketing services, increasing merchant acceptance,
controlling expenses and executing the Company’s share repurchase
program;
- the possibility that the FX-adjusted
billed business growth rate and the FX and business travel-adjusted
revenue growth rate for the third quarter of 2015 will be different
than estimated, which will depend in part on factors such as
changes in the economic and business environment, competition,
regulatory and market pressures on pricing, interest rate
fluctuations, the effectiveness of the Company's marketing and
loyalty programs, and the willingness and ability of Card Members
to sustain their spending at current levels; and
- the ability of the Company to meet its
on-average and over-time EPS growth target in 2017, which will
depend on factors such as the Company’s success in implementing its
strategies and business initiatives including growing the Company’s
share of overall spending, addressing the loss of the Costco U.S.
relationship, retaining and growing the Company’s other cobrand and
other partner relationships, increasing merchant coverage,
enhancing its loyalty coalition offerings, expanding the GNS
business and controlling expenses, the willingness and ability of
Card Members to sustain spending, the effectiveness of marketing
and loyalty programs, and on factors outside management’s control
including regulatory and competitive pressures on pricing, credit
trends, changes in foreign currency exchange and interest rates,
and changes in general economic conditions, such as GDP growth,
consumer confidence, unemployment and the housing market.
A further description of these uncertainties and other risks can
be found in the Company's Annual Report on Form 10-K for the year
ended December 31, 2014, the Company's Quarterly Reports on Form
10-Q for the quarters ended March 31 and June 30, 2015, the
Company's other filings with the Securities and Exchange Commission
and the Company’s presentation materials for the Barclays Global
Financial Services Conference available on the American Express
Investor Relations website at http://ir.americanexpress.com.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150918005527/en/
Media:Marina H. Norville, marina.h.norville@aexp.com,
+1-212-640-2832Investors/Analysts:Ken Paukowits,
ken.f.paukowits@aexp.com, +1-212-640-6348Toby Willard,
sherwood.s.willardjr@aexp.com, +1-212-640-5574
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