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.

Sign up for Kiplinger’s Free E-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
Get Kiplinger Today newsletter — free
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.
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
By David Dittman
-
Is the GOP Secretly Planning to Raise Taxes on the Rich?
Tax Reform As high-stakes tax reform talks resume on Capitol Hill, questions are swirling about what Republicans and President Trump will do.
By Kelley R. Taylor
-
Stock Market Today: Have We Seen the Bottom for Stocks?
Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
By David Dittman
-
Social Security Is Taxable, But There Are Workarounds
If you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.
By Todd Talbot, CFP®, NSSA, CTS™
-
Serious Medical Diagnosis? Four Financial Steps to Take
A serious medical diagnosis calls for updates of your financial, health care and estate plans as well as open conversations with those who'll fulfill your wishes.
By Thomas C. West, CLU®, ChFC®, AIF®
-
What Wall Street's CEOs Are Saying About Trump's Tariffs
We're in the thick of earnings season and corporate America has plenty to say about the Trump administration's trade policy.
By Karee Venema
-
To Stay on Track for Retirement, Consider Doing This
Writing down your retirement and income plan in an investment policy statement can help you resist letting a bear market upend your retirement.
By Matt Green, Investment Adviser Representative
-
How to Make Changing Interest Rates Work for Your Retirement
Higher (or lower) rates can be painful in some ways and helpful in others. The key is being prepared to take advantage of the situation.
By Phil Cooper
-
When to Sell Your Stock
Knowing when to sell a stock is a major decision investors must make. While there's no one correct answer, we look at some best practices here.
By Charles Lewis Sizemore, CFA
-
Within Five Years of Retirement? Five Things to Do Now
If you're retiring in the next five years, your to-do list should contain some financial planning and, according to current retirees, a few life goals, too.
By Evan T. Beach, CFP®, AWMA®