The shares of American Express Company (NYSE: AXP) saw a significant upswing on Friday in the U.S. stock market, finishing at $201.43 after rising an astounding 7.10%. This increase was spurred by the company’s strong financial performance, which also helped the stock to a 52-week high.
In comparison to the previous year’s results of $7.5 billion and $9.85 per share, American Express (AXP) posted full-year net income of $8.4 billion, or $11.21 per share. Excluding interest expenses, the year’s consolidated total sales climbed to $60.5 billion, a notable 14% increase from $52.9 billion the year before. Increased net interest revenue and a spike in Card Member spending were credited for this gain.
Building on the momentum started by its January 2022 expansion strategy, AXP celebrated record-breaking sales and earnings at the end of its fiscal year on December 31, 2023. The business upheld its dedication to strong client interaction, noting a sustained market for its high-end merchandise.
By adding 12.2 million additional proprietary cards to its network, AXP increased its worldwide presence and increased the overall number of cards in use to over 140 million. American Express unveiled their expansion plan in January 2022. From $42 billion to $61 billion, the company’s revenue has grown by more than 40% since then.
Concurrently, Card Members spent a record $1.5 trillion, up 37% when including for foreign exchange. These astounding results highlight both the tremendous earning potential embedded in AXP’s business model and the resilience of its top clients. The company’s consistent growth has improved its capacity to make strategic investments and enabled it to grow operations and sales while keeping expenses under control.
American Express released its full-year 2024 estimate, predicting revenue growth of 9% to 11% and an anticipated range of $12.65 to $13.15, per share, in light of this optimistic trend. Additionally, the company plans to raise the regular quarterly dividend on its existing ordinary shares by 17%, from $0.60 to $0.70 per share, beginning with the first quarter of 2024.
