Wall Street brokerages expect Discover Financial Services (NYSE:DFS) to announce earnings of $2.01 per share for the current quarter, Zacks Investment Research reports. Six analysts have made estimates for Discover Financial Services’ earnings, with the lowest EPS estimate coming in at $1.96 and the highest estimate coming in at $2.08. Discover Financial Services reported earnings per share of $1.59 during the same quarter last year, which indicates a positive year over year growth rate of 26.4%. The company is expected to announce its next earnings results on Tuesday, October 23rd.
According to Zacks, analysts expect that Discover Financial Services will report full year earnings of $7.79 per share for the current fiscal year, with EPS estimates ranging from $7.65 to $7.96. For the next year, analysts anticipate that the business will report earnings of $8.59 per share, with EPS estimates ranging from $8.40 to $8.77. Zacks’ EPS calculations are an average based on a survey of sell-side research analysts that cover Discover Financial Services.
Discover Financial Services (NYSE:DFS) last issued its quarterly earnings data on Thursday, July 26th. The financial services provider reported $1.91 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.88 by $0.03. The company had revenue of $2.60 billion during the quarter, compared to the consensus estimate of $2.63 billion. Discover Financial Services had a net margin of 19.07% and a return on equity of 24.25%. The firm’s revenue was up 7.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.40 earnings per share.
A number of research analysts recently weighed in on the stock. Sandler O’Neill reaffirmed a “buy” rating and issued a $87.00 target price on shares of Discover Financial Services in a research report on Friday, July 27th. Zacks Investment Research downgraded shares of Discover Financial Services from a “buy” rating to a “hold” rating in a research report on Monday, July 23rd. UBS Group raised shares of Discover Financial Services from a “sell” rating to a “neutral” rating and set a $81.93 target price for the company in a research report on Monday, May 7th. BMO Capital Markets decreased their target price on shares of Discover Financial Services from $93.00 to $91.00 and set a “market perform” rating for the company in a research report on Monday, April 30th. Finally, Morgan Stanley decreased their target price on shares of Discover Financial Services from $93.00 to $90.00 and set an “overweight” rating for the company in a research report on Monday, April 30th. Nine research analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has issued a strong buy rating to the company. The stock presently has an average rating of “Buy” and a consensus price target of $85.27.
In other Discover Financial Services news, EVP Carlos Minetti sold 3,750 shares of the stock in a transaction on Monday, July 2nd. The shares were sold at an average price of $69.90, for a total value of $262,125.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Director Mary K. Bush sold 4,674 shares of the stock in a transaction on Tuesday, May 15th. The shares were sold at an average price of $76.17, for a total transaction of $356,018.58. Following the completion of the sale, the director now owns 54,060 shares of the company’s stock, valued at approximately $4,117,750.20. The disclosure for this sale can be found here. In the last quarter, insiders sold 72,174 shares of company stock valued at $5,138,244. Corporate insiders own 0.81% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the company. BlackRock Inc. increased its position in Discover Financial Services by 1.2% during the first quarter. BlackRock Inc. now owns 24,203,881 shares of the financial services provider’s stock worth $1,740,986,000 after acquiring an additional 288,682 shares during the period. Boston Partners increased its position in Discover Financial Services by 0.8% during the second quarter. Boston Partners now owns 12,463,962 shares of the financial services provider’s stock worth $877,588,000 after acquiring an additional 95,312 shares during the period. Diamond Hill Capital Management Inc. increased its position in Discover Financial Services by 6.3% during the first quarter. Diamond Hill Capital Management Inc. now owns 7,712,071 shares of the financial services provider’s stock worth $554,729,000 after acquiring an additional 454,282 shares during the period. LSV Asset Management increased its position in Discover Financial Services by 0.5% during the first quarter. LSV Asset Management now owns 6,935,251 shares of the financial services provider’s stock worth $498,852,000 after acquiring an additional 37,101 shares during the period. Finally, Amundi Pioneer Asset Management Inc. increased its position in Discover Financial Services by 46.4% during the first quarter. Amundi Pioneer Asset Management Inc. now owns 3,674,623 shares of the financial services provider’s stock worth $264,318,000 after acquiring an additional 1,165,130 shares during the period. Institutional investors own 87.20% of the company’s stock.
Discover Financial Services stock traded down $1.15 during mid-day trading on Friday, reaching $74.52. The company’s stock had a trading volume of 3,477,781 shares, compared to its average volume of 2,113,113. The company has a market cap of $25.93 billion, a P/E ratio of 12.46, a price-to-earnings-growth ratio of 0.89 and a beta of 1.49. Discover Financial Services has a 12 month low of $57.50 and a 12 month high of $81.93. The company has a current ratio of 1.49, a quick ratio of 1.49 and a debt-to-equity ratio of 2.54.
The company also recently declared a quarterly dividend, which will be paid on Thursday, September 6th. Shareholders of record on Thursday, August 23rd will be paid a $0.40 dividend. The ex-dividend date is Wednesday, August 22nd. This represents a $1.60 dividend on an annualized basis and a yield of 2.15%. This is a boost from Discover Financial Services’s previous quarterly dividend of $0.35. Discover Financial Services’s dividend payout ratio (DPR) is currently 23.41%.
Discover Financial Services announced that its Board of Directors has approved a share repurchase plan on Thursday, July 19th that permits the company to repurchase $3.00 billion in shares. This repurchase authorization permits the financial services provider to buy up to 11.9% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.
Discover Financial Services Company Profile
Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States. The Direct Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home equity loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, savings accounts, checking accounts, and individual retirement arrangement certificates of deposit.
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