:max_bytes(150000):strip_icc()/GettyImages-2200211591-2a0d82a1ec3545859c5af3819e3c6f3c.jpg "American Express Stock Is Surging—Here’s Why")
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Key Takeaways
- American Express said its quarterly revenue climbed to a record high, as the card issuer benefited from refreshed high-end credit cards and spending by wealthy shoppers.
- The company also boosted the lower end of its full-year outlook.
Strong spending by America’s affluent consumers helped American Express post record quarterly revenue.
The card issuer reported third-quarter earnings per share of $4.14 on revenue that climbed 11% year-over-year to a record $18.43 billion. Both figures topped analysts’ forecasts compiled by Visible Alpha, as the company benefited from refreshed high-end credit cards and spending by wealthy shoppers.
The company also boosted the lower end of its outlook, now projecting full-year EPS of $15.20 to $15.50, up from $15 to $15.50. It said it sees revenue growth of 9% to 10%, compared to 8% to 10% previously.
Shares of American Express jumped more than 6% to around $343 in recent trading following the news, leaving them on track to close at a record high.
Why This Is Significant
The results from American Express underscore recent trends suggesting the economy is increasingly driven by the spending of wealthy Americans, who may be disproportionately benefiting from stock market gains.
CEO Stephen Squeri pointed to the company’s launch of updated high-end credit cards as contributing to the strong results, adding that demand and engagement have exceeded expectations.
With Friday’s advance, American Express shares have risen about 15% this year, compared to a roughly 13% gain for the S&P 500.
