American Express added a record 12.5 million card accounts and increased revenue 25% in 2022.
The company also announced it plans to increase its quarterly dividend 15% to $0.60, beginning in the current quarter.
The credit card provider shares rose more than 10%, nearly erasing its losses from the last 12 months.
American Express (AXP) was the best-performing stock in the Dow after the credit card provider gave strong full-year guidance and raised its dividend.
CEO Stephen Squeri indicated the company produced sustained growth in customer acquisitions, adding a record 12.5 million new card accounts in 2022, along with high levels of engagement and retention. He explained that allowed American Express to “build scale while driving momentum across our core businesses.”
Squeri said because of that success, the company anticipates 2023 revenue will rise 15% to 20%, with earnings per share (EPS) of $11 to $11.40. Both are well above analysts’ estimates.
Stronger Than Before COVID-19
Squeri added that “our business is in an even stronger position today than before the pandemic,” and that the firm is ready to deliver on its longer-term plan of double-digit annual percentage growth in revenue and mid-teens in EPS. American Express also announced it will increase its quarterly dividend by 15% from $0.52 to $0.60, beginning in the current quarter.
Along with its full-year outlook, the company reported fourth quarter EPS of $2.07 and sales of $14.18 billion.
Shares of American Express soared 10.5%, and with today’s gains they’re now down less than 2% over the past year.