American Express Stock Is Surging-Here’s Why

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.
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.