10-QPeriod: Q3 FY2008

AMERICAN EXPRESS CO Quarterly Report for Q3 Ended Sep 30, 2008

Filed October 31, 2008For Securities:AXP

Summary

American Express Company (AXP) filed its Form 10-Q for the quarterly period ended September 30, 2008, amidst a challenging economic environment. The report details financial performance and operational highlights, providing insights into the company's resilience and strategic positioning during this period of significant market turmoil. Investors should pay close attention to revenue trends, credit quality, and the company's response to macroeconomic headwinds. Key financial results for the third quarter of 2008 are presented within the report, alongside management's discussion of financial condition and results of operations. The filing also addresses market risks and legal proceedings, offering a comprehensive view of the company's operational landscape. Given the context of the 2008 financial crisis, the report's disclosures on credit reserves, loan performance, and capital adequacy are particularly crucial for assessing the company's risk exposure and its ability to navigate the prevailing economic uncertainty.

Financial Highlights

25 data points
Beta

Net Income

$815.00M

EPS (Diluted)

$0.70

Cash & Equivalents

$15.90B

Free Cash Flow

$548.00M

Financial Statements
Beta
Operating Income$1.08B
Interest Expense$884.00M
Net Income$815.00M
EPS (Basic)$0.70
EPS (Diluted)$0.70
Shares Outstanding (Basic)1.15B
Shares Outstanding (Diluted)1.16B

Key Highlights

  • 1The report covers the quarterly period ended September 30, 2008, filed on October 30, 2008, during a period of significant economic stress.
  • 2AXP is a large accelerated filer, indicating its substantial size and compliance with rigorous SEC reporting standards.
  • 3The filing includes detailed financial statements, including Consolidated Statements of Income, Balance Sheets, and Cash Flows for the relevant periods.
  • 4Management's Discussion and Analysis (MD&A) section provides crucial insights into the company's financial condition and operational results.
  • 5The report addresses quantitative and qualitative disclosures about market risk, essential for understanding AXP's exposure to financial market fluctuations.
  • 6Legal proceedings and risk factors are also detailed, offering transparency into potential liabilities and business risks.
  • 7As of October 27, 2008, American Express had approximately 1,159,892,263 common shares outstanding.

Frequently Asked Questions

The 10-Q filing for the period ending September 30, 2008, provides the financial statements and management's discussion necessary to assess AXP's health. Investors should review the Consolidated Statements of Income and Balance Sheets for revenue, profitability, and asset/liability trends, paying close attention to credit provisions and loan loss reserves in the MD&A section to understand the impact of the economic downturn on the company's balance sheet and earnings.

The Management's Discussion and Analysis section, along with the notes to the financial statements, will detail the company's approach to credit risk. This typically includes information on credit quality trends, provisions for losses, and any changes in underwriting standards or collection practices implemented in response to market conditions. Investors should look for disclosures on delinquency rates and write-offs.

Item 1A, Risk Factors, is dedicated to outlining the material risks AXP faces. Given the filing date of October 2008, risks related to the global financial crisis, consumer spending, credit defaults, and potential impacts on its lending and travel-related businesses would be of primary concern to investors.

Yes, the Consolidated Balance Sheets as of September 30, 2008, and the Consolidated Statements of Cash Flows for the nine months ended September 30, 2008, will provide insights into the company's liquidity. The MD&A section also typically discusses capital adequacy and funding sources, which are critical during times of market stress.