Known for its premium credit cards and luxury perks, American Express has long been a Wall Street favorite, with total shareholder returns up 81.5% over the past two years amid robust spending by affluent cardholders.
The company reported fourth-quarter earnings Friday morning, posting net income of $2.46 billion, up from $2.17 billion in the same period a year earlier. Earnings rose to $3.53 a share, just below expectations of $3.54, according to LSEG.
While there have been signs of overall slower consumer spending in the past year, American Express has continued to post steady sales growth, supported by strong demand for travel, dining and everyday purchases among its highest-spending customers, analysts say.
American Express has also expanded its reach among younger consumers, with the average age of a new Platinum card member at 33 and a new Gold card member at 29, company executives said during Friday’s fourth-quarter earnings call.
Millennials and Gen Zers account for more than a third of total card spending and tend to transact more frequently than older customers, executives said last quarter.
