American Express Co. (NYSE: AXP) released its first-quarter financial results before the markets opened on Friday. The company said that it had $1.98 in earnings per share (EPS) and $10.31 billion in revenue, which compares with consensus estimates of $1.43 in EPS and $10.65 billion in revenue. The same period of last year reportedly had EPS of $2.01 on $10.49 billion in revenue.

First-quarter consolidated total revenues net of interest expense were $10.3 billion, down 1% from $10.4 billion a year ago. The quarter reflected softness in spending volumes beginning in the last few days of February that significantly accelerated in March as a result of COVID-19 impacts. This was partially offset by strong overall performance in January and February.

Consolidated provisions for losses were $2.6 billion, up $809 million a year ago. The increase was driven primarily by significant reserve builds of $1.7 billion, which reflect deterioration of the global estimated macroeconomic outlook as a result of COVID-19 impacts.

In terms of its segments, Amex reported as follows:

• Global Consumer Services Group reported first-quarter net income of $201 million, compared with $954 million a year ago.
• Global Commercial Services reported first-quarter net income of $38 million, compared with $512 million a year ago.
• Global Merchant and Network Services reported first-quarter net income of $417 million, compared with $571 million a year ago.
• Corporate and Other reported a first-quarter net loss of [$289] million, compared with a net loss of $487 million a year ago.

Steve Squeri, board chair and chief executive, commented:

The first two months of 2020 continued the strong momentum we have delivered over the past two years, but we’re now in a different world. The deterioration in the economy due to COVID-19 impacts that began in the first quarter and accelerated in April has dramatically impacted our volumes. While we can’t predict just how the economy and our business will perform in the coming months, we can focus on supporting our colleagues and customers while remaining financially strong and positioning for growth when the economy begins to improve.

American Express stock closed Thursday at $82.46, in a 52-week range of $67.00 to $138.13. The consensus price target is $106.87. Following the announcement, the stock was up almost 2% at $84.00 in early trading indications Friday.

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