$2.81 Billion in Sales Expected for Discover Financial Services (DFS) This Quarter

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Brokerages expect Discover Financial Services (NYSE:DFS) to post sales of $2.81 billion for the current fiscal quarter, according to Zacks Investment Research. Five analysts have provided estimates for Discover Financial Services’ earnings. The lowest sales estimate is $2.80 billion and the highest is $2.83 billion. Discover Financial Services reported sales of $2.61 billion during the same quarter last year, which would suggest a positive year-over-year growth rate of 7.7%. The firm is expected to report its next quarterly earnings results on Wednesday, January 23rd.

According to Zacks, analysts expect that Discover Financial Services will report full year sales of $10.69 billion for the current fiscal year, with estimates ranging from $10.64 billion to $10.74 billion. For the next year, analysts forecast that the business will report sales of $11.37 billion, with estimates ranging from $11.23 billion to $11.45 billion. Zacks’ sales calculations are an average based on a survey of sell-side analysts that that provide coverage for Discover Financial Services.

Discover Financial Services (NYSE:DFS) last announced its quarterly earnings results on Thursday, October 25th. The financial services provider reported $2.05 earnings per share (EPS) for the quarter, hitting the Zacks’ consensus estimate of $2.05. Discover Financial Services had a net margin of 19.07% and a return on equity of 24.25%. The firm had revenue of $2.72 billion for the quarter, compared to the consensus estimate of $2.69 billion.

DFS has been the topic of a number of recent analyst reports. Wells Fargo & Co increased their price target on shares of Discover Financial Services from $76.00 to $82.00 and gave the stock a “market perform” rating in a report on Monday, October 1st. JPMorgan Chase & Co. raised shares of Discover Financial Services from a “neutral” rating to an “overweight” rating in a report on Tuesday, October 2nd. Bank of America increased their price target on shares of Discover Financial Services from $86.00 to $92.00 and gave the stock a “buy” rating in a report on Friday, September 21st. Zacks Investment Research raised shares of Discover Financial Services from a “hold” rating to a “buy” rating and set a $88.00 price target on the stock in a report on Wednesday, September 26th. Finally, Sandler O’Neill reissued a “buy” rating and set a $87.00 price target on shares of Discover Financial Services in a report on Friday, July 27th. Eight research analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the company’s stock. Discover Financial Services currently has an average rating of “Buy” and a consensus price target of $86.95.

NYSE DFS traded down $5.80 during mid-day trading on Friday, reaching $67.42. 4,987,588 shares of the stock were exchanged, compared to its average volume of 2,092,260. Discover Financial Services has a 1 year low of $63.31 and a 1 year high of $81.93. The company has a market capitalization of $25.47 billion, a PE ratio of 11.26, a price-to-earnings-growth ratio of 0.76 and a beta of 1.51. The company has a debt-to-equity ratio of 2.54, a quick ratio of 1.49 and a current ratio of 1.49.

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 6th. Shareholders of record on Wednesday, November 21st will be issued a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 2.37%. The ex-dividend date of this dividend is Tuesday, November 20th. Discover Financial Services’s payout ratio is 26.76%.

Discover Financial Services declared that its board has initiated a stock buyback plan on Thursday, July 19th that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the financial services provider to purchase up to 11.9% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

In other Discover Financial Services news, CEO David W. Nelms sold 30,000 shares of the stock in a transaction on Wednesday, August 1st. The shares were sold at an average price of $71.79, for a total transaction of $2,153,700.00. Following the transaction, the chief executive officer now directly owns 1,240,798 shares of the company’s stock, valued at $89,076,888.42. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, EVP Carlos Minetti sold 3,750 shares of the stock in a transaction on Wednesday, August 1st. The shares were sold at an average price of $71.60, for a total transaction of $268,500.00. Following the transaction, the executive vice president now directly owns 137,602 shares in the company, valued at $9,852,303.20. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 101,250 shares of company stock worth $7,663,313. Insiders own 0.81% of the company’s stock.

A number of institutional investors and hedge funds have recently bought and sold shares of DFS. LPL Financial LLC raised its position in shares of Discover Financial Services by 24.3% in the first quarter. LPL Financial LLC now owns 55,905 shares of the financial services provider’s stock valued at $4,021,000 after buying an additional 10,920 shares during the last quarter. Private Capital Group LLC raised its position in shares of Discover Financial Services by 8,258.3% in the first quarter. Private Capital Group LLC now owns 2,006 shares of the financial services provider’s stock valued at $144,000 after buying an additional 1,982 shares during the last quarter. Atlantic Trust Group LLC raised its position in shares of Discover Financial Services by 2.9% in the first quarter. Atlantic Trust Group LLC now owns 28,617 shares of the financial services provider’s stock valued at $2,059,000 after buying an additional 809 shares during the last quarter. CIBC World Markets Inc. raised its position in shares of Discover Financial Services by 326.5% in the first quarter. CIBC World Markets Inc. now owns 26,526 shares of the financial services provider’s stock valued at $1,908,000 after buying an additional 20,307 shares during the last quarter. Finally, Summit Trail Advisors LLC raised its position in shares of Discover Financial Services by 4,597.4% in the first quarter. Summit Trail Advisors LLC now owns 264,466 shares of the financial services provider’s stock valued at $264,000 after buying an additional 258,836 shares during the last quarter. 85.76% of the stock is currently owned by institutional investors and hedge funds.

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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