American Express adds a record 12.5 million card accounts and grows revenue by 25% in 2022.
The company also announced that it plans to increase its quarterly dividend by 15% to $0.60 starting this quarter.
Shares of the credit card provider rose more than 10%, nearly erasing their losses over the past 12 months.
American Express (AXP) was the top-performing stock in the Dow after the credit card provider gave a strong full-year outlook and raised its dividend.
CEO Stephen Squeri stated the company achieved sustained growth in customer acquisition, adding a record 12.5 million new card accounts in 2022, along with high levels of engagement and retention. He explained that this allowed American Express to “create scalability while driving momentum across our core businesses.”
Squeri said that because of this success, the company expects revenue to grow by 15% to 20% in 2023, 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 it was before the pandemic” and that the firm is poised to deliver on its long-term plan of double-digit annual percentage growth in sales and earnings per share for the middle-aged. American Express also announced that it will increase its quarterly dividend by 15% from $0.52 to $0.60 starting in the current quarter.
Along with its full-year outlook, the company reported fourth-quarter EPS of $2.07 on revenue of $14.18 billion.
Shares of American Express are up 10.5% and with today’s gains are now less than 2% over the past year.