American Express Company AXP reported fourth-quarter 2020 earnings of $1.76 per share, beating the Zacks Consensus Estimate of $1.26 by 39.7% on the back of lower expenses. However, the bottom line fell 13.3% year over year due to muted revenues.Earnings took a hit from weak spending volumes as a result of the adverse COVID-19 impact.Total revenues of $9.4 billion missed the Zacks Consensus Estimate, marginally by 0.5% and also declined 18% year over year. The top line was affected by a drop in Card Member spending and lower average discount rate.Meanwhile, total expenses of $7.6 billion decreased 9% year over year owing to lower customer engagement costs on the back of limited Card Member spending as well as controlled usage of travel-related Card Member benefits.Total provision led to a $111-MILLION benefit in the reported quarter compared with $1 billion reported in the year-ago period on the back of reserve releases and a solid credit performance.Return on equity of 14.2% declined 1540 basis points year over year.American Express Company Price, Consensus and EPS Surprise American Express Company price-consensus-eps-surprise-chart | American Express Company QuoteSegmental PerformancesAmerican Express’ Global Consumer Services segment reported net income of $1.1 billion, up 12.1% year over year. Total revenues, net of interest expenses of $5.5 billion, decreased 14% year over year, reflecting a fall in Card Member spending and net interest income.Global Commercial Services posted net income of $538 million, down 2.2% year over year. Total revenues, net of interest expenses, were $2.7 billion, which in turn, decreased 20% year over year, mirroring a decline in Card Member spending.Global Merchant and Network Services’ net income plunged 56.1% year over year to $208 million in the reported quarter. Total revenues, net of interest expenses, were down 21% year over year to $1.2 billion, mainly due to reduced Card Member spending and the average discount rate.Strong Financial Position (as of Dec 31, 2020)Cash and cash equivalents were $33 billion, up 38% year over year. Total long-term debt of $43 billion was down 26% year over year.2020 UpdateFull-year adjusted earnings of $3.77 per share were down 53% year over year.Total revenues, net of interest expense for the full year, were $36.1 billion, down 17% year over year.Consolidated expenses for 2020 stood at $27.1 billion, down 14% year over year.Zacks RankAmerican Express carries a Zacks Rank #3 (Hold), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Stocks to ConsiderSome stocks worth considering with the apt combination of elements to surpass estimates this reporting cycle are as follows:Sun Life Financial Inc. SLF has an Earnings ESP of +12.50% and a Zacks Rank #2 (Buy), currently. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Moodys Corporation MCO has an Earnings ESP of +2.74% and a Zacks Rank of 3 at present.Manulife Financial Corp. MFC has an Earnings ESP of +0.95% and is Zacks #2 Ranked.Just Released: Zacks’ 7 Best Stocks for TodayExperts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.These 7 were selected because of their superior potential for immediate breakout.See these time-sensitive tickers now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Moodys Corporation (MCO): Free Stock Analysis Report American Express Company (AXP): Free Stock Analysis Report Manulife Financial Corp (MFC): Free Stock Analysis Report Sun Life Financial Inc. (SLF): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research