FY2017 EPS Estimates for Discover Financial Services Reduced by Analyst (NYSE:DFS)
Discover Financial Services (NYSE:DFS) – Research analysts at DA Davidson dropped their FY2017 earnings per share (EPS) estimates for Discover Financial Services in a report issued on Thursday. DA Davidson analyst A. Cyganovich now anticipates that the financial services provider will post earnings per share of $5.96 for the year, down from their previous forecast of $6.02. DA Davidson also issued estimates for Discover Financial Services’ Q4 2017 earnings at $1.54 EPS, Q1 2018 earnings at $1.58 EPS, Q2 2018 earnings at $1.61 EPS, Q4 2018 earnings at $1.61 EPS, FY2018 earnings at $6.57 EPS and FY2019 earnings at $7.10 EPS.
Discover Financial Services (NYSE:DFS) last posted its quarterly earnings data on Wednesday, July 26th. The financial services provider reported $1.40 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.45 by $0.05. Discover Financial Services had a net margin of 22.08% and a return on equity of 21.86%. The business had revenue of $2.42 billion for the quarter, compared to analysts’ expectations of $2.40 billion. During the same quarter in the previous year, the firm earned $1.47 EPS. Discover Financial Services’s revenue was up 9.2% compared to the same quarter last year. TRADEMARK VIOLATION NOTICE: “FY2017 EPS Estimates for Discover Financial Services Reduced by Analyst (NYSE:DFS)” was originally published by American Banking News and is owned by of American Banking News. If you are reading this article on another website, it was stolen and republished in violation of US & international trademark & copyright legislation. The legal version of this article can be viewed at https://www.americanbankingnews.com/2017/07/28/fy2017-eps-estimates-for-discover-financial-services-reduced-by-analyst-nysedfs.html.
DFS has been the topic of several other research reports. William Blair reissued an “outperform” rating on shares of Discover Financial Services in a research note on Tuesday, July 18th. Deutsche Bank AG downgraded Discover Financial Services from a “buy” rating to a “hold” rating and cut their price objective for the stock from $87.00 to $71.00 in a research report on Monday, May 1st. Instinet restated a “buy” rating and set a $81.00 price objective (down from $86.00) on shares of Discover Financial Services in a research report on Wednesday, July 12th. Wells Fargo & Company downgraded Discover Financial Services to a “buy” rating and set a $70.00 price objective for the company. in a research report on Friday, May 19th. Finally, Jefferies Group LLC reiterated a “buy” rating and issued a $75.00 price target (down from $82.00) on shares of Discover Financial Services in a report on Thursday. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and seventeen have given a buy rating to the stock. The stock currently has a consensus rating of “Buy” and an average price target of $74.83.
Discover Financial Services (DFS) opened at 60.44 on Friday. The stock has a market cap of $22.98 billion, a PE ratio of 10.32 and a beta of 1.47. The company’s 50-day moving average price is $61.25 and its 200-day moving average price is $65.27. Discover Financial Services has a 12-month low of $53.91 and a 12-month high of $74.33.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 7th. Stockholders of record on Thursday, August 24th will be issued a $0.35 dividend. The ex-dividend date is Tuesday, August 22nd. This is a boost from Discover Financial Services’s previous quarterly dividend of $0.30. This represents a $1.40 annualized dividend and a dividend yield of 2.32%. Discover Financial Services’s dividend payout ratio (DPR) is 20.73%.
Discover Financial Services declared that its board has initiated a stock repurchase plan on Wednesday, June 28th that authorizes the company to repurchase $2.23 billion in shares. This repurchase authorization authorizes the financial services provider to repurchase up to 9.5% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.
In other news, EVP Julie A. Loeger sold 5,000 shares of the stock in a transaction that occurred on Monday, May 1st. The shares were sold at an average price of $62.54, for a total value of $312,700.00. Following the completion of the transaction, the executive vice president now directly owns 28,345 shares in the company, valued at $1,772,696.30. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Carlos Minetti sold 8,000 shares of the stock in a transaction that occurred on Monday, July 3rd. The shares were sold at an average price of $62.42, for a total transaction of $499,360.00. Following the completion of the transaction, the executive vice president now owns 205,149 shares of the company’s stock, valued at $12,805,400.58. The disclosure for this sale can be found here. Insiders sold 103,516 shares of company stock valued at $6,456,648 over the last quarter. Insiders own 0.96% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of DFS. RMB Capital Management LLC boosted its position in Discover Financial Services by 52.1% in the fourth quarter. RMB Capital Management LLC now owns 10,868 shares of the financial services provider’s stock valued at $783,000 after buying an additional 3,725 shares during the period. HighPoint Advisor Group LLC boosted its position in Discover Financial Services by 5.5% in the fourth quarter. HighPoint Advisor Group LLC now owns 7,224 shares of the financial services provider’s stock valued at $523,000 after buying an additional 378 shares during the period. M Holdings Securities Inc. bought a new position in Discover Financial Services during the fourth quarter valued at about $241,000. Kentucky Retirement Systems bought a new position in Discover Financial Services during the fourth quarter valued at about $2,063,000. Finally, Kentucky Retirement Systems Insurance Trust Fund bought a new position in Discover Financial Services during the fourth quarter valued at about $921,000. Institutional investors and hedge funds own 84.13% of the company’s stock.
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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