American Express Co said on Tuesday it expects an uptick in holiday travel this summer, but not business travel, as it seeks to recover from a year which dented airline traffic and hotel bookings, knocking 15% off its bottom line. The New York-based company still beat Wall Street estimates for profit as it lowered credit loss reserves and benefited from higher online spending by consumers stuck at home. AmEx forecast a 9% to 10% jump in overall 2021 revenue, with travel and expenditure (T&E) spending by consumers recovering to around 70% of fourth-quarter 2019 levels by the final quarter of 2021.
AmEx's (AXP) Q4 earnings gain traction from lower expenses and a solid performance by Global Consumer Services segment, offset by weak spending volumes.
American Express (AXP) delivered earnings and revenue surprises of 39.68% and -0.51%, respectively, for the quarter ended December 2020. Do the numbers hold clues to what lies ahead for the stock?