American Express (AmEx) has reported a significant revenue increase for the fourth quarter of 2024, driven by robust consumer spending during the holiday season.
The company’s performance exceeded Wall Street expectations, reflecting strong demand in travel, dining, and online shopping categories.
AmEx’s revenue for the quarter rose by 9% year-over-year to $17.18 billion, narrowly surpassing analysts’ forecasts of $17.16 billion. Adjusted earnings per share came in at $3.04, matching market expectations.
This growth was fueled by an 8% increase in billed business, which measures customer spending on AmEx cards, reaching $408.4 billion for the quarter.
“The resilience of our cardholders during the holiday season, particularly in travel and entertainment spending, was a major driver of this quarter’s success,” said Stephen J. Squeri, Chairman and CEO of American Express. “Our strategy of investing in premium benefits continues to resonate with our customers.”
The holiday season’s spending trends revealed a sharp increase in travel and entertainment expenses, with consumers opting for luxury travel options such as first-class and business-class airline seats.
AmEx also saw strong growth in online retail spending, underscoring the continued shift towards e-commerce.
The company’s customer engagement initiatives, including enhanced rewards programs and exclusive partnerships, further contributed to its revenue surge.
Additionally, the global recovery in travel has bolstered AmEx’s performance, as cardholders take advantage of travel perks and concierge services.
In a show of confidence in its financial stability, AmEx announced a 17% increase in its quarterly dividend, raising it to $0.82 per share. This marks a significant return of value to shareholders and underscores the company’s optimistic outlook for 2025.
Looking ahead, American Express has provided an upbeat forecast for the coming year. The company expects earnings per share to range between $15 and $15.50, alongside revenue growth of 8% to 10%. “We’re entering 2025 with strong momentum, positioning us well to deliver sustainable growth in the years ahead,” Squeri stated.
The company’s results and positive outlook have bolstered investor confidence, despite a challenging macroeconomic environment.
AmEx’s continued focus on premium customer segments and investment in technology has enabled it to weather economic headwinds and capitalize on evolving consumer behaviors.
American Express’s strong fourth-quarter performance highlights its ability to adapt and thrive in a competitive financial services landscape.
As consumer spending patterns continue to evolve, AmEx’s strategic focus on premium benefits and travel experiences positions it as a leader in the industry.
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