Q1 2018 Earnings Forecast for Discover Financial Services Issued By Jefferies Group (DFS)
Discover Financial Services (NYSE:DFS) – Analysts at Jefferies Group increased their Q1 2018 earnings per share (EPS) estimates for Discover Financial Services in a report released on Wednesday. Jefferies Group analyst J. Hecht now forecasts that the financial services provider will earn $1.66 per share for the quarter, up from their prior forecast of $1.43. Jefferies Group has a “Buy” rating and a $75.00 price target on the stock. Jefferies Group also issued estimates for Discover Financial Services’ Q3 2018 earnings at $1.65 EPS and FY2018 earnings at $6.49 EPS.
Discover Financial Services (NYSE:DFS) last issued its quarterly earnings results on Wednesday, July 26th. The financial services provider reported $1.40 EPS for the quarter, missing analysts’ consensus estimates of $1.45 by ($0.05). The business had revenue of $2.42 billion for the quarter, compared to analyst estimates of $2.40 billion. Discover Financial Services had a return on equity of 20.74% and a net margin of 20.04%. Discover Financial Services’s revenue for the quarter was up 9.2% on a year-over-year basis. During the same quarter last year, the firm posted $1.47 EPS.
DFS has been the topic of several other research reports. Zacks Investment Research lowered shares of Discover Financial Services from a “hold” rating to a “sell” rating in a report on Monday. Oppenheimer Holdings, Inc. set a $69.00 target price on shares of Discover Financial Services and gave the company a “buy” rating in a report on Wednesday, July 26th. Barclays PLC reaffirmed an “equal weight” rating and set a $70.00 target price (down previously from $79.00) on shares of Discover Financial Services in a report on Thursday, July 13th. Buckingham Research assumed coverage on shares of Discover Financial Services in a report on Monday, October 2nd. They set a “buy” rating and a $74.00 target price 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 investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and sixteen have assigned a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus price target of $74.45.
Shares of Discover Financial Services (NYSE DFS) traded up 0.12% during trading on Friday, hitting $66.77. 981,581 shares of the stock were exchanged. Discover Financial Services has a 52 week low of $55.41 and a 52 week high of $74.33. The firm has a market capitalization of $24.86 billion, a price-to-earnings ratio of 11.52 and a beta of 1.47. The stock’s 50 day moving average price is $62.97 and its 200 day moving average price is $61.63.
Discover Financial Services declared that its Board of Directors has initiated a share repurchase plan on Tuesday, July 25th that allows the company to buyback $2.75 billion in shares. This buyback authorization allows the financial services provider to repurchase up to 11.3% 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.
The firm also recently declared 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. The ex-dividend date is Tuesday, November 21st. This represents a $1.40 dividend on an annualized basis and a yield of 2.10%. Discover Financial Services’s dividend payout ratio (DPR) is currently 24.05%.
In related news, SVP Edward W. Mcgrogan sold 1,228 shares of Discover Financial Services stock in a transaction dated Monday, July 31st. The shares were sold at an average price of $61.06, for a total transaction of $74,981.68. Following the completion of the transaction, the senior vice president now directly owns 13,085 shares of the company’s stock, valued at approximately $798,970.10. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Carlos Minetti sold 8,000 shares of Discover Financial Services stock in a transaction dated Monday, October 2nd. The shares were sold at an average price of $64.51, for a total transaction of $516,080.00. The disclosure for this sale can be found here. Over the last three months, insiders have sold 157,002 shares of company stock valued at $9,694,424. 0.96% of the stock is currently owned by corporate insiders.
Hedge funds and other institutional investors have recently modified their holdings of the stock. V Wealth Management LLC purchased a new position in Discover Financial Services during the 2nd quarter valued at about $101,000. FNY Managed Accounts LLC purchased a new position in Discover Financial Services during the 1st quarter valued at about $124,000. Orrstown Financial Services Inc. lifted its position in Discover Financial Services by 16.7% during the 2nd quarter. Orrstown Financial Services Inc. now owns 2,002 shares of the financial services provider’s stock valued at $125,000 after acquiring an additional 286 shares during the period. Perigon Wealth Management LLC lifted its position in Discover Financial Services by 2.3% during the 1st quarter. Perigon Wealth Management LLC now owns 2,146 shares of the financial services provider’s stock valued at $147,000 after acquiring an additional 48 shares during the period. Finally, Capstone Investment Advisors Netherlands B.V. purchased a new position in Discover Financial Services during the 2nd quarter valued at about $157,000. 85.41% of the stock is owned by institutional investors.
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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