Amex Shares Reach Record High Following Strong 2024 Guidance

Despite robust performance, rising delinquencies and credit losses raise concerns.

American Express Co. (Amex) shares jumped more than 6% Friday to an all-time high after the company posted strong guidance for 2024 and boosted its dividend.
Amex 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.
The company reported EPS of $2.62 for the fourth quarter, 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.
Amex's fourth quarter profits jumped 23% from last year as more cardmembers kept a running balance on their accounts, resulting in more interest income for the credit card issuer.
Despite the strong performance, the company noted an increase in delinquencies and credit losses, raising questions about the financial health of AmEx cardmembers.