American Express Stock Trades Higher: Strong FY24 Outlook, Dividend Hike Drive Investor Action
Portfolio Pulse from Anusuya Lahiri
American Express Co (NYSE:AXP) reported Q4 revenue of $15.8 billion, missing the consensus of $16.0 billion, and EPS of $2.62, slightly below the consensus of $2.64. Despite this, the stock is trading higher premarket due to a strong FY24 outlook and a 17% dividend increase from $0.60 to $0.70 per share. The company expects FY24 revenue growth of 9-11% and EPS of $12.65-$13.15, both above consensus estimates. Total expenses increased by 4% Y/Y, and the provision for credit losses rose to $1.44 billion from $1.03 billion a year ago.
January 26, 2024 | 1:40 pm
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POSITIVE IMPACT
American Express reported lower-than-expected Q4 earnings but is trading higher due to a positive FY24 outlook and a significant dividend increase.
The stock is trading higher premarket, indicating positive investor sentiment despite the earnings miss. The strong FY24 outlook and dividend increase are likely to outweigh the short-term impact of the earnings miss. The relevance is high as the news is directly about AXP, and the importance is significant due to the impact on future dividends and earnings expectations. The confidence level is high as the premarket trading activity provides a clear indication of the market's reaction.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100