Discover Financial Services (DFS) Expected to Announce Earnings of $1.53 Per Share
Equities research analysts expect that Discover Financial Services (NYSE:DFS) will announce earnings of $1.53 per share for the current fiscal quarter, according to Zacks Investment Research. Five analysts have issued estimates for Discover Financial Services’ earnings, with the lowest EPS estimate coming in at $1.45 and the highest estimate coming in at $1.59. Discover Financial Services posted earnings per share of $1.56 during the same quarter last year, which indicates a negative year over year growth rate of 1.9%. The firm is expected to issue its next quarterly earnings report after the market closes on Tuesday, October 24th.
According to Zacks, analysts expect that Discover Financial Services will report full year earnings of $5.89 per share for the current fiscal year, with EPS estimates ranging from $5.68 to $5.96. For the next fiscal year, analysts expect that the business will post earnings of $6.51 per share, with EPS estimates ranging from $6.28 to $6.70. Zacks’ EPS averages are a mean average based on a survey of analysts that that provide coverage for Discover Financial Services.
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 for the quarter, missing the consensus estimate of $1.45 by ($0.05). Discover Financial Services had a net margin of 20.91% and a return on equity of 21.28%. The business had revenue of $2.42 billion during the quarter, compared to the consensus estimate of $2.40 billion. During the same period in the prior year, the company posted $1.47 earnings per share. The firm’s revenue was up 9.2% compared to the same quarter last year.
A number of research analysts recently weighed in on the company. Zacks Investment Research lowered Discover Financial Services from a “hold” rating to a “sell” rating in a report on Tuesday. Wells Fargo & Co assumed coverage on Discover Financial Services in a report on Tuesday, October 10th. They set a “market perform” rating and a $69.00 target price on the stock. Buckingham Research assumed coverage on Discover Financial Services in a report on Monday, October 2nd. They set a “buy” rating and a $74.00 target price on the stock. ValuEngine raised Discover Financial Services from a “hold” rating to a “buy” rating in a report on Tuesday, September 26th. Finally, Morgan Stanley decreased their target price on Discover Financial Services from $71.00 to $70.00 and set an “overweight” rating on the stock in a report on Friday, September 8th. Three investment analysts have rated the stock with a sell rating, eight have issued a hold rating and sixteen have given a buy rating to the stock. Discover Financial Services has a consensus rating of “Hold” and an average target price of $73.58.
In related news, EVP Kathryn Mcnamara Corley sold 4,000 shares of the company’s stock in a transaction on Friday, September 1st. The stock was sold at an average price of $59.63, for a total transaction of $238,520.00. Following the completion of the sale, the executive vice president now directly owns 150,744 shares in the company, valued at approximately $8,988,864.72. The sale was disclosed in a filing with the SEC, which is available through this link. Also, SVP Edward W. Mcgrogan sold 1,228 shares of the company’s stock in a transaction on Monday, July 31st. The stock was sold at an average price of $61.06, for a total value of $74,981.68. Following the sale, the senior vice president now owns 13,085 shares of the company’s stock, valued at $798,970.10. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 157,002 shares of company stock valued at $9,694,424. 0.96% of the stock is owned by corporate insiders.
Several hedge funds have recently made changes to their positions in DFS. BlackRock Inc. lifted its position in shares of Discover Financial Services by 3,280.4% during the 1st quarter. BlackRock Inc. now owns 30,704,582 shares of the financial services provider’s stock worth $2,099,886,000 after buying an additional 29,796,268 shares during the last quarter. Diamond Hill Capital Management Inc. lifted its position in shares of Discover Financial Services by 1,458.6% during the 2nd quarter. Diamond Hill Capital Management Inc. now owns 3,559,909 shares of the financial services provider’s stock worth $221,391,000 after buying an additional 3,331,498 shares during the last quarter. Hotchkis & Wiley Capital Management LLC bought a new stake in shares of Discover Financial Services during the 2nd quarter worth $199,350,000. Principal Financial Group Inc. lifted its position in shares of Discover Financial Services by 492.6% during the 2nd quarter. Principal Financial Group Inc. now owns 3,504,010 shares of the financial services provider’s stock worth $217,914,000 after buying an additional 2,912,742 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its position in shares of Discover Financial Services by 320.9% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 2,672,385 shares of the financial services provider’s stock worth $166,196,000 after buying an additional 2,037,515 shares during the last quarter. Institutional investors and hedge funds own 85.45% of the company’s stock.
Shares of Discover Financial Services (NYSE DFS) traded up 1.74% on Friday, reaching $66.80. The company had a trading volume of 621,791 shares. The company’s 50-day moving average price is $62.23 and its 200-day moving average price is $61.68. The firm has a market capitalization of $24.87 billion, a price-to-earnings ratio of 11.53 and a beta of 1.47. Discover Financial Services has a 52-week low of $55.01 and a 52-week high of $74.33.
Discover Financial Services announced that its Board of Directors has authorized a stock repurchase program on Wednesday, June 28th that allows the company to buyback $2.23 billion in shares. This buyback authorization allows the financial services provider to purchase up to 9.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its shares are undervalued.
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, December 7th. Investors of record on Wednesday, November 22nd will be given a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 2.13%. Discover Financial Services’s dividend payout ratio is currently 24.18%.
Discover Financial Services Company Profile
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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