American Express (NYSE: AXP) posted fourth-quarter earnings that beat expectations, but the credit card company's guidance was a bit underwhelming.

Investors were disappointed, sending Amex shares down 3% as of 10:15 a.m. ET.

Solid but not spectacular

American Express earned $3.04 per share in the quarter, a penny ahead of expectations, on revenue that matched Wall Street's consensus estimate of $17.18 billion. For the year the company earned $14.01 per share, an increase of 25% from 2023.

"2024 was another strong year for American Express," CEO Stephen J. Squeri said in a statement. "We exited the year with increased momentum, with billings growth accelerating to 8 percent in the fourth quarter, driven by stronger spending from our consumer and commercial customers during the holiday season."

But the momentum might not be strong enough to appease Wall Street expectations. American Express forecast full-year 2025 earnings of between $15 and $15.50 per share. The $15.25 midpoint of that estimate is below the consensus $15.28 per share analysts had expected prior to the release.

Is American Express a buy?

Shares of American Express were up 70% over the past year heading into earnings season. There are no signs of trouble in these results, however, near-term enthusiasm might have to be reined in.

For long-term-focused investors, there is a lot to like here. American Express is increasing its quarterly dividend by 17% to $0.82 per share, boosting a dividend yield that had fallen to less than 1%. The company also said it believes it can sustain long-term earnings-per-share growth in the mid-teens annually.

There could be volatility up ahead, but for patient investors any downdraft could be a buying opportunity.

Before you buy stock in American Express, consider this:

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