10-QPeriod: Q2 FY2010

AMERICAN EXPRESS CO Quarterly Report for Q2 Ended Jun 30, 2010

Filed August 5, 2010For Securities:AXP

Summary

American Express Company (AXP) reported its quarterly results for the period ending June 30, 2010. The filing indicates a focus on financial stability and operational performance in the wake of the 2008 financial crisis. Key financial metrics and operational segment performance will be crucial for investors to assess the company's recovery and future growth prospects. The company is operating as a large accelerated filer, signaling its substantial market capitalization and adherence to rigorous reporting standards. Investors should pay close attention to the details within the Management's Discussion and Analysis (MD&A) for insights into the company's strategies, risk management, and outlook. The report also highlights the company's commitment to electronic filing and interactive data, suggesting a modern approach to financial transparency.

Financial Highlights

37 data points
Beta

Net Income

$1.02B

EPS (Diluted)

$0.84

Total Assets

$143.76B

Cash & Equivalents

$20.69B

Free Cash Flow

$2.01B

Financial Statements
Beta
Operating Income$1.59B
Interest Expense$610.00M
Net Income$1.02B
EPS (Basic)$0.84
EPS (Diluted)$0.84
Shares Outstanding (Basic)1.19B
Shares Outstanding (Diluted)1.20B

Key Highlights

  • 1AXP is a large accelerated filer, indicating a substantial market presence and adherence to strict SEC reporting requirements.
  • 2The report covers the quarterly period ending June 30, 2010, and includes consolidated financial statements for both three and six-month periods.
  • 3Key financial statements presented include Consolidated Statements of Income, Consolidated Balance Sheets, and Consolidated Statements of Cash Flows.
  • 4The filing includes detailed notes to the financial statements covering a range of topics such as acquisitions, fair values, receivables, loans, and derivatives.
  • 5Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is a significant section for investors to understand the company's performance drivers.
  • 6The company has submitted and posted Interactive Data Files, indicating a commitment to modern, electronic financial reporting.
  • 7Risk factors and legal proceedings are also detailed, providing investors with insight into potential challenges and liabilities.

Frequently Asked Questions

This filing provides a snapshot of American Express's financial health for the quarter ending June 30, 2010. Investors should review the Consolidated Statements of Income and Balance Sheets, along with the MD&A, to understand revenue, profitability, assets, liabilities, and overall financial condition. Specific trends in loan performance, credit quality, and interest income/expense will be important indicators of financial health during this period.

The report references 'Reportable Operating Segments' in the index (Item 16). Investors should refer to the MD&A section (Item 2) and potentially Note 16 for detailed information on the performance of AXP's various business segments. Understanding the revenue drivers and profitability of each segment, such as card services, global commercial payments, and network services, is crucial for assessing the company's strategic direction and growth potential.

The filing identifies 'Risk Factors' in Item 1A. Investors should carefully read this section to understand potential challenges such as economic conditions, competition, regulatory changes, credit risk, and operational risks that could impact the company's future performance and stock value. The 'Legal Proceedings' (Item 1) also highlight potential liabilities.

The 'Quantitative and Qualitative Disclosures about Market Risk' (Item 3) and various notes, such as 'Derivatives and Hedging Activities' (Note 9), 'Accounts Receivable' (Note 4), and 'Loans' (Note 5), provide insight into AXP's risk management practices. Investors can assess how the company monitors and mitigates risks related to interest rates, foreign currency, credit losses, and other market fluctuations.