Discover Financial Services (NYSE:DFS) Announces Quarterly 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 EPS for the quarter, beating the consensus estimate of $3.68 by $1.87, MarketWatch Earnings reports. The firm had revenue of $3.58 billion for the quarter, compared to analyst estimates of $3.01 billion. Discover Financial Services had a return on equity of 28.88% and a net margin of 22.20%. Discover Financial Services’s revenue for the quarter was up 34.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($1.20) earnings per share.

Shares of DFS traded down $1.78 during mid-day trading on Thursday, reaching $123.77. 94,632 shares of the company’s stock were exchanged, compared to its average volume of 1,842,154. The company has a debt-to-equity ratio of 1.89, a quick ratio of 1.24 and a current ratio of 1.24. The stock’s 50-day simple moving average is $119.52. Discover Financial Services has a 52-week low of $48.18 and a 52-week high of $127.65. The company has a market cap of $37.74 billion, a P/E ratio of 14.14, a price-to-earnings-growth ratio of 0.16 and a beta of 1.83.

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 2nd. Shareholders of record on Thursday, August 19th will be issued a $0.50 dividend. This is a boost from Discover Financial Services’s previous quarterly dividend of $0.44. This represents a $2.00 dividend on an annualized basis and a yield of 1.62%. Discover Financial Services’s dividend payout ratio (DPR) is 48.89%.

Several research firms recently commented on DFS. Morgan Stanley increased their target price on Discover Financial Services from $108.00 to $114.00 and gave the company an “equal weight” rating in a report on Thursday, April 22nd. Barclays upped their price objective on shares of Discover Financial Services from $132.00 to $146.00 and gave the company an “overweight” rating in a research note on Friday, July 9th. BMO Capital Markets restated a “market perform” rating and issued a $105.00 price objective on shares of Discover Financial Services in a research note on Monday, April 26th. Citigroup upgraded shares of Discover Financial Services from a “neutral” rating to a “buy” rating in a research note on Monday, July 12th. Finally, upgraded shares of Discover Financial Services from a “neutral” rating to a “buy” rating and upped their price objective for the company from $101.00 to $150.00 in a research note on Friday, July 9th. Nine research analysts have rated the stock with a hold rating and eleven have given a buy rating to the stock. The stock currently has an average rating of “Buy” and an average price target of $113.39.

In related news, EVP Diane E. Offereins sold 15,000 shares of Discover Financial Services stock in a transaction on Friday, April 30th. The shares were sold at an average price of $114.02, for a total transaction of $1,710,300.00. Following the transaction, the executive vice president now owns 113,915 shares in the company, valued at approximately $12,988,588.30. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Michael H. Moskow sold 3,824 shares of Discover Financial Services stock in a transaction 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 transaction, the director now owns 51,253 shares in the company, valued at approximately $5,943,810.41. The disclosure for this sale can be found here. Over the last three months, insiders have sold 28,794 shares of company stock valued at $3,213,580. Corporate 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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