Discover Financial Services (DFS) Releases Earnings Results, Misses Expectations By $0.02 EPS
Discover Financial Services (NYSE:DFS) issued its quarterly earnings data on Tuesday. The financial services provider reported $1.52 earnings per share for the quarter, missing analysts’ consensus estimates of $1.54 by ($0.02), Briefing.com reports. Discover Financial Services had a net margin of 20.91% and a return on equity of 21.28%. The company had revenue of $2.53 billion for the quarter, compared to the consensus estimate of $2.49 billion. During the same quarter in the prior year, the firm earned $1.56 earnings per share. Discover Financial Services’s revenue for the quarter was up 9.7% compared to the same quarter last year.
Discover Financial Services (NYSE:DFS) traded up 0.82% during trading on Tuesday, reaching $67.39. The company’s stock had a trading volume of 2,688,880 shares. The stock’s 50 day moving average is $62.65 and its 200-day moving average is $61.60. Discover Financial Services has a 52 week low of $55.01 and a 52 week high of $74.33. The firm has a market cap of $25.09 billion, a P/E ratio of 11.63 and a beta of 1.47.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 7th. Shareholders of record on Wednesday, November 22nd will be paid a dividend of $0.35 per share. The ex-dividend date of this dividend is Tuesday, November 21st. This represents a $1.40 annualized dividend and a yield of 2.08%. Discover Financial Services’s dividend payout ratio (DPR) is presently 24.18%.
Several equities research analysts have commented on the stock. Zacks Investment Research cut shares of Discover Financial Services from a “hold” rating to a “sell” rating in a research report on Monday. Oppenheimer Holdings, Inc. set a $69.00 price target on shares of Discover Financial Services and gave the stock a “buy” rating in a research report on Wednesday, July 26th. Barclays PLC reiterated an “equal weight” rating and issued a $70.00 price target (down from $79.00) on shares of Discover Financial Services in a research report on Thursday, July 13th. Buckingham Research assumed coverage on shares of Discover Financial Services in a research report on Monday, October 2nd. They issued a “buy” rating and a $74.00 price target on the stock. Finally, ValuEngine cut shares of Discover Financial Services from a “buy” rating to a “hold” rating in a research report on Monday, September 11th. Three analysts have rated the stock with a sell rating, eight have given a hold rating and sixteen have issued a buy rating to the company. Discover Financial Services currently has an average rating of “Hold” and an average target price of $73.58.
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Discover Financial Services declared that its board has authorized a stock buyback plan on Wednesday, June 28th that allows the company to buyback $2.23 billion in outstanding shares. This buyback authorization allows the financial services provider to reacquire up to 9.5% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board of directors believes its stock is undervalued.
In other news, COO Roger C. Hochschild sold 15,258 shares of the firm’s stock in a transaction dated Tuesday, August 1st. The stock was sold at an average price of $61.04, for a total transaction of $931,348.32. Following the sale, the chief operating officer now owns 814,999 shares of the company’s stock, valued at $49,747,538.96. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CEO David W. Nelms sold 30,000 shares of the firm’s stock in a transaction dated Monday, October 2nd. The stock was sold at an average price of $64.55, for a total value of $1,936,500.00. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 157,002 shares of company stock worth $9,694,424. 0.96% of the stock is currently owned by insiders.
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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