Discover Financial Services (NYSE:DFS) Issues Earnings Results, Beats Estimates By $1.87 EPS

Discover Financial Services (NYSE:DFS) posted its earnings results on Tuesday. The financial services provider reported $5.55 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.68 by $1.87, MarketWatch Earnings reports. The company had revenue of $3.58 billion during the quarter, compared to the consensus estimate of $3.01 billion. Discover Financial Services had a net margin of 22.20% and a return on equity of 28.88%. The firm’s quarterly revenue was up 34.4% on a year-over-year basis. During the same period in the previous year, the firm posted ($1.20) earnings per share.

Shares of DFS stock traded down $1.64 during trading hours on Thursday, hitting $123.91. The company had a trading volume of 124,071 shares, compared to its average volume of 1,842,154. The business’s fifty day moving average is $119.52. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 1.89. Discover Financial Services has a fifty-two week low of $48.18 and a fifty-two week high of $127.65. The firm has a market capitalization of $37.78 billion, a PE ratio of 14.14, a PEG ratio of 0.16 and a beta of 1.83.

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 2nd. Stockholders of record on Thursday, August 19th will be issued a $0.50 dividend. This is a positive change from Discover Financial Services’s previous quarterly dividend of $0.44. This represents a $2.00 annualized dividend and a dividend yield of 1.61%. Discover Financial Services’s dividend payout ratio is currently 48.89%.

A number of brokerages have weighed in on DFS. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Discover Financial Services from $120.00 to $130.00 and gave the stock a “hold” rating in a research report on Monday, July 12th. Zacks Investment Research cut shares of Discover Financial Services from a “buy” rating to a “hold” rating and set a $124.00 target price for the company. in a research note on Wednesday, July 7th. raised shares of Discover Financial Services from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $101.00 to $150.00 in a research note on Friday, July 9th. Morgan Stanley boosted their target price on shares of Discover Financial Services from $108.00 to $114.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 22nd. Finally, Wells Fargo & Company boosted their target price on shares of Discover Financial Services from $111.00 to $125.00 and gave the stock an “equal weight” rating in a research note on Monday, July 12th. Nine investment analysts have rated the stock with a hold rating and eleven have given a buy rating to the stock. The stock presently has an average rating of “Buy” and an average price target of $113.39.

In other Discover Financial Services news, Director Michael H. Moskow sold 3,824 shares of the stock in a transaction that occurred on Thursday, May 6th. The shares were sold at an average price of $115.97, for a total transaction of $443,469.28. Following the sale, the director now directly owns 51,253 shares in the company, valued at approximately $5,943,810.41. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, EVP Daniel Peter Capozzi sold 9,970 shares of the stock in a transaction that occurred on Monday, April 26th. The stock was sold at an average price of $106.30, for a total transaction of $1,059,811.00. Following the sale, the executive vice president now owns 27,042 shares in the company, valued at $2,874,564.60. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 28,794 shares of company stock worth $3,213,580. Company insiders own 0.54% of the company’s stock.

About Discover Financial Services

Discover Financial Services, through its subsidiaries, operates as a digital banking and payment services company in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts, checking accounts, and sweep accounts.

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Earnings History for Discover Financial Services (NYSE:DFS)

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