Zacks: Analysts Expect Discover Financial Services (DFS) Will Post Quarterly Sales of $1.85 Billion
Analysts forecast that Discover Financial Services (NYSE:DFS) will report $1.85 billion in sales for the current fiscal quarter, Zacks reports. Six analysts have issued estimates for Discover Financial Services’ earnings, with estimates ranging from $1.79 billion to $1.94 billion. Discover Financial Services reported sales of $2.22 billion in the same quarter last year, which indicates a negative year-over-year growth rate of 16.7%. The company is scheduled to announce its next earnings report on Tuesday, July 18th.
On average, analysts expect that Discover Financial Services will report full year sales of $1.85 billion for the current fiscal year, with estimates ranging from $7.32 billion to $7.45 billion. For the next fiscal year, analysts anticipate that the firm will report sales of $7.67 billion per share, with estimates ranging from $7.55 billion to $7.76 billion. Zacks’ sales averages are an average based on a survey of analysts that that provide coverage for Discover Financial Services.
Discover Financial Services (NYSE:DFS) last issued its earnings results on Tuesday, April 25th. The financial services provider reported $1.43 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.42 by $0.01. Discover Financial Services had a return on equity of 21.66% and a net margin of 22.54%. The business had revenue of $2.34 billion during the quarter, compared to analysts’ expectations of $2.36 billion. During the same quarter in the previous year, the business earned $1.35 EPS. The company’s revenue for the quarter was up 5.2% on a year-over-year basis.
DFS has been the subject of several research analyst reports. Deutsche Bank AG downgraded Discover Financial Services from a “buy” rating to a “hold” rating and reduced their price objective for the stock from $87.00 to $71.00 in a research note on Monday, May 1st. Wells Fargo & Co downgraded Discover Financial Services to a “buy” rating and set a $70.00 price objective for the company. in a research note on Friday, May 19th. Keefe, Bruyette & Woods reissued a “buy” rating on shares of Discover Financial Services in a research note on Friday, May 12th. BMO Capital Markets reissued a “hold” rating and issued a $68.00 price objective on shares of Discover Financial Services in a research note on Tuesday, April 11th. Finally, Oppenheimer Holdings Inc. reduced their price objective on Discover Financial Services from $85.00 to $75.00 and set an “outperform” rating for the company in a research note on Wednesday, April 26th. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and seventeen have assigned a buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus price target of $74.30.
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In related news, CEO David W. Nelms sold 30,000 shares of the firm’s stock in a transaction that occurred on Monday, May 1st. The stock was sold at an average price of $62.18, for a total value of $1,865,400.00. Following the transaction, the chief executive officer now directly owns 1,674,732 shares of the company’s stock, valued at approximately $104,134,835.76. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO David W. Nelms sold 15,000 shares of the firm’s stock in a transaction that occurred on Monday, April 3rd. The shares were sold at an average price of $67.93, for a total value of $1,018,950.00. The disclosure for this sale can be found here. Insiders sold a total of 114,342 shares of company stock worth $7,344,016 over the last three months. 1.07% of the stock is owned by company insiders.
Several hedge funds and other institutional investors have recently modified their holdings of the stock. Jaffetilchin Investment Partners LLC increased its position in shares of Discover Financial Services by 0.7% in the first quarter. Jaffetilchin Investment Partners LLC now owns 3,230 shares of the financial services provider’s stock worth $221,000 after buying an additional 24 shares during the last quarter. Court Place Advisors LLC raised its stake in Discover Financial Services by 0.7% in the first quarter. Court Place Advisors LLC now owns 5,831 shares of the financial services provider’s stock worth $399,000 after buying an additional 39 shares during the period. Quadrant Capital Group LLC raised its stake in Discover Financial Services by 1.1% in the first quarter. Quadrant Capital Group LLC now owns 4,296 shares of the financial services provider’s stock worth $287,000 after buying an additional 46 shares during the period. Altfest L J & Co. Inc. raised its stake in Discover Financial Services by 0.3% in the third quarter. Altfest L J & Co. Inc. now owns 24,729 shares of the financial services provider’s stock worth $1,398,000 after buying an additional 67 shares during the period. Finally, Park National Corp OH raised its stake in Discover Financial Services by 0.9% in the first quarter. Park National Corp OH now owns 7,934 shares of the financial services provider’s stock worth $543,000 after buying an additional 70 shares during the period. 85.54% of the stock is currently owned by institutional investors and hedge funds.
Shares of Discover Financial Services (NYSE:DFS) opened at 59.80 on Friday. Discover Financial Services has a one year low of $50.32 and a one year high of $74.33. The stock’s 50 day moving average price is $62.49 and its 200-day moving average price is $67.79. The stock has a market cap of $22.74 billion, a PE ratio of 10.21 and a beta of 1.42.
The business also recently disclosed a quarterly dividend, which was paid on Thursday, May 25th. Investors of record on Thursday, May 11th were paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 2.01%. The ex-dividend date of this dividend was Tuesday, May 9th. Discover Financial Services’s payout ratio is 20.76%.
About Discover Financial Services
Discover Financial Services (DFS) is a direct banking and payment services company. The Company is a bank holding company, as well as a financial holding company. The Company operates through two segments: Direct Banking and Payment Services. It provides direct banking products and services, and payment services through its subsidiaries.
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