8-KRegulation FD

AMERICAN EXPRESS CO 8-K Report, Regulation FD Disclosure (Jun 2, 2010)

Filed June 2, 2010For Securities:AXP

Summary

This 8-K filing from American Express (AXP) on June 2, 2010, provides an important update on the company's billed business performance for March, April, and the first 20 days of May 2010. CEO Kenneth I. Chenault reported significant year-over-year growth, with worldwide billed business increasing by 20% in March and 19% in April. Even when adjusted for foreign exchange fluctuations, these figures remained strong, at 17% and 15% respectively.

Key Highlights

  • 1Worldwide billed business grew 20% year-over-year in March 2010 (17% FX-adjusted).
  • 2Worldwide billed business grew 19% year-over-year in April 2010 (15% FX-adjusted).
  • 3Preliminary estimated growth for the first 20 days of May 2010 was 14% (14% FX-adjusted).
  • 4Adjusted for days mix and foreign exchange, billed business grew 15% for both March and April 2010.
  • 5Preliminary adjusted growth for the first 20 days of May 2010 was an estimated 15%.
  • 6Growth in U.S. consumer cardmember billed business was consistent across all wallet sizes during Q1 2010.

Frequently Asked Questions

The main takeaway is that American Express is experiencing robust and accelerating growth in its billed business, a key indicator of customer spending on its cards. This suggests a positive trend in the company's revenue generation, especially coming out of the economic downturn.

The reported year-over-year growth rates of 20% for March and 19% for April are substantial, indicating a strong recovery and expansion in customer spending activity on American Express cards. The FX-adjusted figures also remain strong, suggesting organic growth.

This implies that the growth is broad-based and not reliant on a specific customer segment. It suggests that both high-spending and lower-spending consumers are increasing their usage of American Express cards, pointing to a healthy and widespread consumer adoption and engagement.

While the filing provides preliminary data for the first 20 days of May, it is not formal forward-looking guidance. The preliminary data suggests a continued positive trend, but investors should note it is subject to revision.