Why American Express Earnings Have the Dow Stock Lower
American Express is the worst Dow Jones stock Friday after the payments giant reported a top-line miss in its third quarter. Here's what you need to know.


American Express (AXP) is the worst Dow Jones stock Friday after the global payments company reported mixed results for its third quarter and raised its full-year profit forecast.
In the three months ended September 30, American Express said revenue increased 8.2% year over year to $16.6 billion as card member spending rose 5.8% to $387.3 billion. Its earnings per share (EPS) were up 5.8% from the year-ago period to $3.49.
The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $16.7 billion and earnings of $3.28 per share, according to Yahoo Finance.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"We had another strong quarter that reflects the earnings power of our business model and our continued investments for growth," said American Express CEO Stephen J. Squeri in a statement. "We continued to attract large numbers of new premium Card Members with 3.3 million new card acquisitions, while maintaining our high retention rates, excellent credit performance, and expense discipline."
As a result of its strong financial performance in the first nine months of 2024, AXP raised its full-year profit forecast. The company now anticipates EPS in the range of $13.75 to $14.05, up from its previous forecast of $13.30 to $13.80. It still expects revenue growth of around 9%.
"Our continued momentum demonstrates the sustainability of our product refresh strategy and the growth it is driving in our portfolio," Squeri said.
Is American Express stock a buy, sell or hold?
Heading into today's trading, American Express was one of the best Dow stocks so far this year, second only to Walmart (WMT) in terms of price return. Still, Wall Street remains on the sidelines when it comes to the blue chip stock.
According to S&P Global Market Intelligence, the average analyst target price for AXP stock is $265, which is a discount to where shares are currently trading. Meanwhile, the consensus recommendation is Hold.
Financial services firm BofA Securities is one of those with a Neutral (Hold) rating on the large-cap stock, along with a $263 price target.
"We rate AXP at Neutral as we think risk/reward is balanced," wrote BofA Securities analyst Mihir Bhatia in an August 21 note. "AXP's strong execution and card acquisitions are a positive but this is balanced by a tough spend backdrop and a premium valuation."
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
Claiming the Standard Deduction? Here Are Five Tax Breaks for Retirement in 2025
Tax Tips If you’re retired and filing taxes, these five tax credits and deductions could provide thousands in relief (if you qualify).
-
QUIZ: Test Your Retirement IQ
Quiz Are you smarter than…everyone else? Test your retirement smarts with this quiz.
-
Where There's a Will, There's a Way Your Assets Will Be Distributed as You Wish
Your will is the backbone of a strong, adaptable estate plan that ensures what you leave behind goes to your selected beneficiaries. Without a will, state laws determine who gets your assets.
-
I'm a Financial Adviser: This Is What You're Really Losing if You Cut Back on Your 401(k) Contributions
Missing out on the benefits of the employer match and compounding growth could force you to work longer and lower your standard of living in retirement. Here are some alternative options.
-
S&P 500 Hits New Highs as Rally Resumes: Stock Market Today
Tech stocks were the biggest gainers on Wall Street today, with Nvidia and Dell making notable moves.
-
Should You Buy Gold as It Tops $4,000? Here's What the Experts Say
Rate cuts, a weak dollar and macro uncertainty have helped create a "perfect storm" for gold this year. Should investors add exposure or is it too late to buy?
-
Preferred Bank Stocks: The Investment Retirees (and Others) May Be Missing Out On
Most large banks issue preferred stocks that pay out fixed dividends, often with higher yields than bonds. Should you make room for them in your portfolio?
-
Don't Let Your Equity Compensation Trip You Up: A Financial Expert's Guide
Stock options, RSUs and other executive perks can come with some serious strings attached. To avoid a nasty tax surprise, you need a plan.
-
Rally Fades on Mixed AI Revolution News: Stock Market Today
All three main U.S. equity indexes opened higher but closed lower as a seven-session winning streak for the S&P 500 came to an end.
-
The Spendthrift Trap: Here's One Way to Protect Your Legacy From an Irresponsible Heir
A spendthrift clause in an estate plan can protect an inheritance from a financially irresponsible child's debts and poor decisions.