Insights into American Express's Q3 Earnings Report

By Will Feuer

American Express is set to release its third-quarter earnings report on Friday morning, providing valuable insights into the spending habits of cardholders. Here are the key details you need to know:

Earnings Expectations

Analysts surveyed by FactSet anticipate that American Express will report third-quarter earnings of $2.17 billion, or $2.95 per share. This represents an increase from the $1.85 billion, or $2.47 per share, reported in the same quarter last year.

Revenue Projection

Sales for the quarter are projected to reach $15.36 billion, according to FactSet. This would be a notable increase from the $13.56 billion recorded in the previous year.

Key Areas to Observe

1. Travel Spending

One significant factor contributing to the growth of American Express's overall spending volume has been travel and entertainment expenditures. Over the past year, these expenses have played a crucial role. However, some airlines, particularly low-cost carriers, have recently expressed concerns about declining demand. American Express will share its perspective on cardholders' appetite for travel, shedding light on this crucial aspect.

2. Delta Partnership

Delta Air Lines has made adjustments to its SkyMiles loyalty program, with recent amendments being rolled back. This development is particularly relevant for American Express because it collaborates with Delta to offer the Delta SkyMiles Reserve and Delta SkyMiles Reserve Business cards. American Express is expected to comment on these changes and their impact.