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.
-
Social Security Wage Base Just Increased: Who Pays More Tax in 2026?Payroll Taxes The Social Security Administration has announced significant changes affecting millions as we approach a new year.
-
Quiz: How Well Do You Understand the Social Security Earnings Test?Quiz Test your basic knowledge of the Social Security earnings test in our quick quiz.
-
Targa Resources, Take-Two Interactive, Boston Scientific: Why Experts Rate These Stocks at Strong BuyWall Street is highly bullish on these three high-quality stocks.
-
Debunking Three Myths About Defined Outcome ETFs (aka Buffered ETFs)Defined outcome ETFs offer a middle ground between traditional equity and fixed-income investments, helping provide downside protection and upside participation.
-
This Is Why Judge Judy Says Details Are Important in Contracts: This Contract Had HolesA couple's disastrous experience with reclaimed wood flooring led to safety hazards and a lesson in the critical importance of detailed contracts.
-
US-China Trade Hopes Send Stocks to New Highs: Stock Market TodayApple and Microsoft are on track to join Nvidia in the $4 trillion market cap club.
-
A Lesson From the School of Rock (and a Financial Adviser) as the Markets Go Around and AroundIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I'm a Financial Pro: This Is How You Can Guide Your Heirs Through the Great Wealth TransferFocus on creating a clear estate plan, communicating your wishes early to avoid family conflict, leaving an ethical will with your values and wisdom and preparing them practically and emotionally.
-
To Reap the Full Benefits of Tax-Loss Harvesting, Consider This Investment Strategist's StepsTax-loss harvesting can offer more advantages for investors than tax relief. Over the long term, it can potentially help you maintain a robust portfolio and build wealth.
-
Social Security Wisdom From a Financial Adviser Receiving Benefits HimselfYou don't know what you don't know, and with Social Security, that can be a costly problem for retirees — one that can last a lifetime.