American Express Stock Hits Record on Strong 2024 Guidance

American Express Co. (Amex) (AXP) shares jumped more than 6% Friday to an all-time high as the credit card and financial services firm posted strong guidance and boosted its dividend despite quarterly results that were less than expected.

Amex said it expects full-year earnings per share (EPS) for this year in the range of $12.65 to $13.15, beating estimates. It also sees 2024 revenue rising 9% to 11%, with the midrange above forecasts. Chief Executive Officer (CEO) Stephen Squeri said the upgraded outlook was based on "the momentum in our business."

In the fourth quarter, the company reported EPS of $2.62, up from $2.07 a year ago. Revenue advanced 11% to $15.8 billion. However, analysts were looking for EPS of $2.64 and revenue at $16 billion, respectively.

The company said gains primarily were driven by higher net interest income and increased card member spending.

Expenses for the latest quarter climbed 5%, mainly because of higher customer engagement costs, Amex said. It said operating expenses rose, in part because of the devaluation of the Argentine peso, and as the company paid its workers more. Throughout 2023 the firm “continued to drive strong customer engagement, and demand for our premium products remained robust," Squeri said.

Amex also increased its quarterly dividend to 70 cents from 60 cents a share, beginning with the current-quarter dividend declaration.

Shares of American Express were up about 6.6% at a record $200.54 at 12:18 p.m. ET Friday, and have advanced about 28% in the past year.