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3 Things to Watch When American Express Company Reports Earnings | The Motley Fool
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</li> <li> <a id="best-buys-best-ai-stocks" href="/investing/stock-market/market-sectors/information-technology/ai-stocks/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Best AI Stocks" > Best AI Stocks </a> </li> <li> <a id="best-buys-best-growth-stocks" href="/investing/stock-market/types-of-stocks/growth-stocks/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Best Growth Stocks" > Best Growth Stocks </a> </li> <li> <a id="best-buys-dividend-kings" href="/investing/stock-market/types-of-stocks/dividend-stocks/dividend-kings/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Dividend Kings" > Dividend Kings </a> </li> <li> <a id="best-buys-best-index-funds" href="/investing/how-to-invest/index-funds/best-index-funds/" data-track-category="nav_hover_menu" 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data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Energy" > Energy </a> </li> <li> <a id="industries-to-invest-in-real-estate" href="/investing/stock-market/market-sectors/real-estate-investing/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Real Estate" > Real Estate </a> </li> <li> <a id="industries-to-invest-in-healthcare" href="/investing/stock-market/market-sectors/healthcare/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Healthcare" > Healthcare </a> </li> <li> <a id="industries-to-invest-in-consumer-goods" href="/investing/stock-market/market-sectors/consumer-staples/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Consumer Goods" > Consumer Goods </a> </li> <li> <a id="industries-to-invest-in-materials" href="/investing/stock-market/market-sectors/materials/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Materials" > Materials </a> </li> <li> <a id="industries-to-invest-in-industrials" href="/investing/stock-market/market-sectors/industrials/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Industrials" > Industrials </a> </li> </ul> </div> </div> </div> </div> <div class="flex dropdown"> <button class="dropdown-label text-16"> How to Invest <svg viewBox="0 0 320 512"> <title>angle-down</title> <path fill="currentColor" d="M151.5 347.8L3.5 201c-4.7-4.7-4.7-12.3 0-17l19.8-19.8c4.7-4.7 12.3-4.7 17 0L160 282.7l119.7-118.5c4.7-4.7 12.3-4.7 17 0l19.8 19.8c4.7 4.7 4.7 12.3 0 17l-148 146.8c-4.7 4.7-12.3 4.7-17 0z"></path> </svg> </button> <div class="flex submenu"> <div class="flex justify-between topnav-wrapper p-32px xl:px-0px"> <div class="submenu-column"> <div class="pb-6 font-bold uppercase text-14">Investing 101</div> <ul class="leading-relaxed"> <li> <a id="investing-101-how-to-invest-money" href="/investing/how-to-invest/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="How to Invest Money" > How to Invest Money </a> </li> <li> <a id="investing-101-what-to-invest-in" href="/investing/how-to-invest/what-to-invest-in/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="What to Invest In" > What to Invest In </a> </li> <li> <a id="investing-101-how-to-invest-in-stocks" href="/investing/how-to-invest/stocks/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="How to Invest in Stocks" > How to Invest in Stocks </a> </li> <li> <a id="invesing-101-how-to-invest-in-etfs" href="/investing/how-to-invest/etfs/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="How to Invest in ETFs" > How to Invest in ETFs </a> </li> <li> <a id="investing-101-how-to-invest-in-index-funds" href="/investing/how-to-invest/index-funds/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="How to Invest in Index Funds" > How to Invest in Index Funds </a> </li> <li> <a id="investing-101-how-to-invest-in-bonds" href="/investing/how-to-invest/bonds/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="How to Invest in Bonds" > How to Invest in Bonds </a> </li> <li> <a id="investing-101-financial-dictionary" href="/terms/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Financial Dictionary" > Financial Dictionary </a> </li> </ul> </div> <div class="submenu-column"> <div class="pb-6 font-bold uppercase text-14">Stock Market Basics</div> <ul class="leading-relaxed"> <li> <a id="stock-market-basics-stock-market-101" href="/investing/stock-market/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Stock Market 101" > Stock Market 101 </a> </li> <li> <a id="stock-market-basics-types-of-stocks" href="/investing/stock-market/types-of-stocks/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Types of Stocks" > Types of Stocks </a> </li> <li> <a id="stock-market-basics-stock-market-sectors" href="/investing/stock-market/market-sectors/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Stock Market Sectors" > Stock Market Sectors </a> </li> <li> <a id="stock-market-basics-stock-market-indexes" href="/investing/stock-market/indexes/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Stock Market Indexes" > Stock Market Indexes </a> </li> <li> <a id="stock-market-basics-what-are-stock-splits" href="/terms/s/stock-split/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="What Are Stock Splits?" > What Are Stock Splits? </a> </li> <li> <a id="stock-market-basics-what-is-compound-interest" href="/investing/how-to-invest/stocks/compound-interest-accounts/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="What Is Compound Interest?" > What Is Compound Interest? </a> </li> <li> <a id="stock-market-basics-after-hours-trading" href="/terms/a/after-hours-trading/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="After Hours Trading" > After Hours Trading </a> </li> </ul> </div> <div class="submenu-column"> <div class="pb-6 font-bold uppercase text-14">Start Investing</div> <ul class="leading-relaxed"> <li> <a id="start-investing-how-to-buy-stock" href="/investing/how-to-invest/stocks/how-to-buy-stock/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="How to Buy Stock" > How to Buy Stock </a> </li> <li> <a id="start-investing-best-brokers-for-beginners" href="https://www.fool.com/money/buying-stocks/best-online-stock-brokers-beginners/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Best Brokers for Beginners" > Best Brokers for Beginners </a> </li> <li> <a id="start-investing-best-brokerage-accounts" href="https://www.fool.com/money/buying-stocks/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Best Brokerage Accounts" > Best Brokerage Accounts </a> </li> <li> <a id="start-investing-good-time-to-buy-stocks" href="/investing/how-to-invest/stocks/good-time-to-buy-stocks/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Good Time to Buy Stocks" > Good Time to Buy Stocks </a> </li> <li> <a id="start-investing-how-many-shares-to-buy" href="/investing/how-to-invest/stocks/how-many-shares-buy-stock/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="How Many Shares to Buy?" > How Many Shares to Buy? </a> </li> <li> <a id="start-investing-portfolio-diversification" href="/investing/how-to-invest/portfolio-diversification/" target="_blank" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Portfolio Diversification" > Portfolio Diversification </a> </li> <li> <a id="start-investing-long-term-investing-strategies" href="/investing/how-to-invest/stocks/investment-strategies/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Long Term Investing Strategies" > Long Term Investing Strategies </a> </li> </ul> </div> <div class="submenu-column"> <div class="pb-6 font-bold uppercase text-14">Companies to Invest In</div> <ul class="leading-relaxed"> <li> <a id="companies-to-invest-in-magnificent-seven-companies" href="/investing/how-to-invest/stocks/magnificent-seven/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Magnificent Seven Companies" > Magnificent Seven Companies </a> </li> <li> <a 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id="companies-to-invest-in-investing-in-openai" href="/investing/how-to-invest/stocks/how-to-invest-in-openai-stock/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Investing in OpenAI" > Investing in OpenAI </a> </li> <li> <a id="companies-to-invest-in-investing-in-nvidia" href="/investing/how-to-invest/stocks/how-to-invest-in-nvidia-stock/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Investing in Nvidia" > Investing in Nvidia </a> </li> <li> <a id="companies-to-invest-in-investing-in-databricks" href="/investing/how-to-invest/stocks/how-to-invest-in-databricks/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Investing in Databricks" > Investing in Databricks </a> </li> </ul> </div> </div> </div> </div> <div class="flex dropdown"> <button class="dropdown-label text-16"> Retirement <svg viewBox="0 0 320 512"> <title>angle-down</title> <path fill="currentColor" d="M151.5 347.8L3.5 201c-4.7-4.7-4.7-12.3 0-17l19.8-19.8c4.7-4.7 12.3-4.7 17 0L160 282.7l119.7-118.5c4.7-4.7 12.3-4.7 17 0l19.8 19.8c4.7 4.7 4.7 12.3 0 17l-148 146.8c-4.7 4.7-12.3 4.7-17 0z"></path> </svg> </button> <div class="flex submenu"> <div class="flex justify-between topnav-wrapper p-32px xl:px-0px"> <div class="submenu-column"> <div class="pb-6 font-bold uppercase text-14">Retirement Essentials</div> <ul class="leading-relaxed"> <li> <a id="retirement-essentials-retirement-101" href="/retirement/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Retirement 101" > Retirement 101 </a> </li> <li> <a id="retirement-essentials-types-of-retirement-accounts" href="/retirement/plans/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Types of Retirement Accounts" > Types of Retirement Accounts </a> </li> <li> <a id="retirement-essentials-how-to-contribute-to-401k-ira" href="/retirement/plans/401k/contribute-to-401k-and-ira/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="How to Contribute to 401k/IRA?" > How to Contribute to 401k/IRA? </a> </li> <li> <a id="retirement-essentials-strategies-to-save-for-retirement" href="/retirement/strategies/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Strategies to Save for Retirement" > Strategies to Save for Retirement </a> </li> <li> <a id="retirement-essentials-asset-allocation-for-my-age" href="/retirement/strategies/asset-allocation-by-age/" data-track-category="nav_hover_menu" data-track-action="foolcom_nav_click" data-source="foolcom_nav_click" data-track-link="Asset Allocation for My Age" > Asset 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'block' : 'none'; } if (isMobile) { popoverButton.addEventListener('touchstart', togglePopoverMobile); } else { popoverButton.addEventListener('click', togglePopoverDesktop); } }); </script> <div class="md:grid md:gap-32px md:grid-flow-col foolcom-grid-content-sidebar mx-auto md:max-w-880 lg:max-w-1280 xl:gap-80 pb-24px md:pb-32px"> <div class=""> <header> <h1 class="text-3xl font-medium tracking-tight text-gray-1100 leading-relative-2 md:text-5xl">3 Things to Watch When American Express Company Reports Earnings</h1> </header> <div class="text-lg font-medium text-gray-800 mt-12px md:mt-24px mb-24px "> By <a class="text-cyan-800 hover:text-cyan-600 hover:underline" data-track-action="foolcom_article_click" data-source="foolcom_article_click" data-track-category="article_byline" data-track-link="Patrick Morris" href="/author/7258/">Patrick Morris</a> – Jan 18, 2015 at 11:00AM </div> <div class="cta-banner-container px-24 py-20 border shadow-md mt-20px md:mt-28px bg-gold-200 border-gold-600 mb-0px sm:mb-0px md:mb-0px "> <p class="leading-tight text-md mb-0px"> You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to <strong>get instant access to our top analyst recommendations, in-depth research, investing resources</strong>, and more. <a href="https://www.fool.com/mms/mark/op-free-tbox-art" class="font-bold text-cyan-800 hover:text-cyan-600" data-track-category="article_sidebar_member_cta" data-track-action="foolcom_article_click" data-source="foolcom_article_click" data-track-link="Learn More" >Learn More</a> </p> </div> </div> <div class="hidden md:max-w-300 lg:max-w-320px md:block"> <div class="bg-white p-20px shadow-card"> <div class="flex place-content-between"> <div class="w-3/4"> <h2 class="leading-none uppercase text-h5"> <a class="text-cyan-800 hover:text-cyan-700" href="/quote/nyse/axp/" data-track-category="article_header_company_card" data-track-action="foolcom_article_click" data-source="foolcom_article_click" data-track-link="NYSE: AXP" >NYSE: AXP</a> </h2> <h3 class="font-medium leading-none text-gray-800 text-md">American Express</h3> </div> <div class="w-1/4"> <img alt="American Express Stock Quote" class="flex-none object-contain w-full" width="64" height="64" src="https://g.foolcdn.com/art/companylogos/mark/AXP.png" onerror="logo_on_error.call(this,'AXP','NYSE',64,64,'white')" /> </div> </div> <div class="h-0 border-t border-gray-300 border-dotted my-20px"></div> <div class="flex text-sm place-content-between"> <div class="text-gray-800">Market Cap</div> <div class="font-bold text-right text-gray-1100">$215B</div> </div> <div class="h-0 border-t border-gray-300 border-dotted my-20px"></div> <div class="lg:flex"> <div class="lg:w-full"> <div class="text-sm text-gray-800 mb-4px">Today's Change</div> <div class="flex lg:pr-8px lg:text-sm xl:text-16"> <div class="flex items-center w-1/4 bg-green-900 p-8px"> <svg class="w-full font-light text-gray-100 transform rotate-180 h-24px" viewBox="0 0 19 19"> <title>Arrow-Thin-Down</title> <path d="M18.3047 9.22656L18.0312 8.95312C17.8359 8.75781 17.5625 8.75781 17.3672 8.95312L10.4141 15.9062V1.21875C10.4141 0.984375 10.1797 0.75 9.94531 0.75H9.55469C9.28125 0.75 9.08594 0.984375 9.08594 1.21875V15.9062L2.09375 8.95312C1.89844 8.75781 1.625 8.75781 1.42969 8.95312L1.15625 9.22656C0.960938 9.42188 0.960938 9.69531 1.15625 9.89062L9.39844 18.1328C9.59375 18.3281 9.86719 18.3281 10.0625 18.1328L18.3047 9.89062C18.5 9.69531 18.5 9.42188 18.3047 9.22656Z"></path> </svg> </div> <div class="w-full text-lg font-medium bg-green-200 p-8px text-gray-1100">(0.14%) $0.43</div> </div> </div> <div class="bg-gray-100 lg:w-1/3"> <div class="text-sm text-gray-800 bg-white pb-4px lg:text-right mt-16px lg:mt-0px">Current Price</div> <div class="text-sm font-medium lg:text-right lg:pl-8px text-gray-1100 p-8px lg:text-lg">$304.68</div> </div> </div> <div class="text-xs text-gray-800 mt-12px">Price as of November 29, 2024, 1:00 p.m. ET</div> </div> </div> </div> <div class="border-gray-200 -mx-24px md:-mx-40px h-1px border-b-1px md:border-b-0px pt-16px md:pt-0px md:h-16px md:bg-gradient-to-b from-transparent to-gray-200"></div> </section> <section class="container mx-auto bg-white px-24px md:px-40 pt-36px sm:pt-16px md:pt-16px md:pb-8"> <div class="mx-auto md:max-w-880 lg:max-w-1280"> <div class="flex justify-center"> <div id="articles-top" class="relative show-ad-label min-w-100 mt-16px pt-24px pb-16px bg-gray-200 border border-gray-200 px-20px grid justify-center"> <div class="bg-gradient-to-br from-gray-300 to-gray-100" style="width:970px; height:250px;"></div> <script type="text/javascript"> googletag.cmd.push(function() { googletag.display('articles-top'); }); </script> </div> </div> <div class="foolcom-grid-content-sidebar mt-8px md:mt-36px"> <div class="max-w-full"> <p class="text-xl font-bold text-gray-1100 mb-32px ">American Express is announcing its earnings soon, and there are three critical things investors should keep an eye on.</p> <div class="article-body"> <p><strong>American Express</strong> <span class="font-bold whitespace-nowrap" data-id="202897">(<a class="ticker-symbol" href="/quote/nyse/axp/">AXP</a><span class="text-green-900 ticker-change"> 0.14%</span>)</span> will announce its 2014 fourth-quarter and full-year earnings on Jan. 21, and there are three things investors need to watch for when the earnings are released.</p> <p><strong>Can it still outpace its peers?<br/></strong>At the <strong>Goldman Sachs</strong> U.S. Financial Services conference, American Express revealed it was behind only <strong>MasterCard</strong> <span class="font-bold whitespace-nowrap" data-id="209277">(<a class="ticker-symbol" href="/quote/nyse/ma/">MA</a><span class="text-green-900 ticker-change"> 0.10%</span>)</span> in growing its income through the first nine months of the year:</p> <p class="caption"><img alt="" loading="lazy" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F155914%2F3-things-to-watch-when-american-express-reports-earnings-1.png&op=resize&w=700" srcset="https://g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/155914/3-things-to-watch-when-american-express-reports-earnings-1.png&w=300&op=resize 300w, https://g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/155914/3-things-to-watch-when-american-express-reports-earnings-1.png&w=1000&op=resize 1000w, https://g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/155914/3-things-to-watch-when-american-express-reports-earnings-1.png&w=2000&op=resize 2000w"/><br/> Source: American Express presentation at the Goldman Sachs U.S. Financial Services conference.</p> <p>It should be noted AmEx watched its revenue rise by just 3%, so its sizable gain in income was attributable to disciplined expense management. By comparison, MasterCard's revenue rose nearly hand in hand with its net income, with revenue up 13.4% and net income up 13%. </p> <p>As a result, one of the first things to look for is whether this impressive growth in net income continued in the fourth quarter, especially in light of the recent news of the decline in retail spending. As reported by Reuters, "excluding automobiles, gasoline, building materials and food services, sales fell 0.4 percent last month after a 0.6 percent rise in November."</p> <p>This may lead to lower revenue for companies in the credit card industry, so it will be important to see how net income trends at AmEx and whether or not the company can continue to operate efficiently to the benefit of its bottom line. One month of reduced consumer spending will in no way hurt the long-term investing prospects of American Express, but investors should monitor the company's growth trends, especially relative to its peers.</p><div class="flex justify-center"> <div class="relative show-ad-label min-w-100 mb-24px pt-24px pb-16px bg-gray-200 border border-gray-200 px-20px grid justify-center" id="articles-incontent1"> <div class="bg-gradient-to-br from-gray-300 to-gray-100" style="width:300px; height:250px;"></div> <script type="text/javascript"> googletag.cmd.push(function() { googletag.display('articles-incontent1'); }); </script> </div> </div> <p><strong>Can we get tangible evidence of growth in OptBlue?<br/> </strong>In a <a href="https://www.fool.com/investing/general/2014/11/15/3-things-american-express-companys-management-want.aspx" target="_blank">review</a> of the third-quarter earnings call, I noted it was encouraging to hear chief financial officer Jeff Campbell say, "We also made progress on several newer fronts this quarter, attracting additional partners to our OptBlue program, acquiring new card members on our EveryDay product, and participating in the upcoming Apple Pay mobile wallet launch."</p> <p>OptBlue and EveryDay are products aimed at allowing American Express to be more widely used at merchants (in the case of OptBlue) and by consumers (in the case of the EveryDay card), which could provide meaningful growth opportunities for the company. <span>But the fact remains that the company has provided little empirical data to enable investors to determine exactly what "progress" for these programs means.</span></p><div data-pitch-placement="in_line_article_pitch"></div> <p>So, with the full year officially in the books, it would be nice to see what these programs -- OptBlue, the EveryDay card, and others -- could mean to the future of American Express. Then investors could see whether these initiatives are marginal or material and in turn use that information to help guide their investment decisions.</p> <p><strong>Further guidance on share repurchases<br/> </strong>In March 2014 we learned the Federal Reserve approved AmEx's plan to repurchase up to $4.4 billion shares in 2014 and $1 billion in the first quarter of 2015.</p><div class="flex justify-center"> <div class="relative show-ad-label min-w-100 mb-24px pt-24px pb-16px bg-gray-200 border border-gray-200 px-20px grid justify-center" id="articles-incontent2"> <div class="bg-gradient-to-br from-gray-300 to-gray-100" style="width:300px; height:250px;"></div> <script type="text/javascript"> googletag.cmd.push(function() { googletag.display('articles-incontent2'); }); </script> </div> </div> <p>And, as shown below, since 2010, share repurchases have been instrumental in propelling earnings-per-share growth well beyond the aggregate gains in net income:</p> <p><img alt="" loading="lazy" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F155914%2F3-things-to-watch-when-american-express-reports-earnings-2.png&op=resize&w=700" srcset="https://g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/155914/3-things-to-watch-when-american-express-reports-earnings-2.png&w=300&op=resize 300w, https://g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/155914/3-things-to-watch-when-american-express-reports-earnings-2.png&w=1000&op=resize 1000w, https://g.foolcdn.com/image/?url=https%3A//g.foolcdn.com/editorial/images/155914/3-things-to-watch-when-american-express-reports-earnings-2.png&w=2000&op=resize 2000w"/></p> <p>Given that American Express' approved share repurchase plan will conclude at the end of this quarter, one final thing for investors to monitor is whether or not management provides any guidance on how American Express will allocate its capital in the future. Will it continue to aggressively repurchase shares, as its stock has been essentially flat over the last year? Or will it once more raise its dividend?</p> <p>Considering that American Express still trades at an attractive P/E of 16.2 and seeks to return 50% of its capital back to investors through dividends or share repurchases, the logical course of action would be to continue its sizable repurchase plans. But if the company indicates otherwise, it could be a cause for concern.</p> <p>Of course, because it's ultimately up to the Federal Reserve's discretion whether or not the plan is approved, this issue will be fully known in March following the Fed's analysis of AmEx in its Comprehensive Capital Analysis and Review<strong></strong>, but investors should be curious to know what guidance -- if any -- the company provides surrounding its capital allocation decisions.</p><div class="flex justify-center"> <div class="relative show-ad-label min-w-100 mb-24px pt-24px pb-16px bg-gray-200 border border-gray-200 px-20px grid justify-center" id="articles-incontent3"> <div class="bg-gradient-to-br from-gray-300 to-gray-100" style="width:300px; height:250px;"></div> <script type="text/javascript"> googletag.cmd.push(function() { googletag.display('articles-incontent3'); }); </script> </div> </div> <div data-pitch-placement="article_pitch" class="article-pitch-container"></div> </div> <div class="text-sm text-gray-700 mb-80 leading-relative-2"> <span class="article-disclosure"><p><em><a href="http://my.fool.com/profile/TMFMorris/info.aspx">Patrick Morris</a> has no position in any stocks mentioned. The Motley Fool recommends American Express and MasterCard. The Motley Fool owns shares of MasterCard. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley">considering a diverse range of insights</a> makes us better investors. 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