Equities research analysts expect that Discover Financial Services (NYSE:DFS) will announce earnings of $2.12 per share for the current fiscal quarter, according to Zacks Investment Research. Five analysts have issued estimates for Discover Financial Services’ earnings, with the lowest EPS estimate coming in at $2.05 and the highest estimate coming in at $2.23. Discover Financial Services posted earnings per share of $1.91 during the same quarter last year, which indicates a positive year over year growth rate of 11%. The firm is expected to issue its next quarterly earnings report on Thursday, July 25th.
According to Zacks, analysts expect that Discover Financial Services will report full year earnings of $8.76 per share for the current fiscal year, with EPS estimates ranging from $8.52 to $8.88. For the next fiscal year, analysts expect that the business will post earnings of $9.54 per share, with EPS estimates ranging from $9.34 to $9.73. Zacks’ EPS averages are a mean average based on a survey of analysts that that provide coverage for Discover Financial Services.
Discover Financial Services (NYSE:DFS) last issued its quarterly earnings results on Thursday, April 25th. The financial services provider reported $2.15 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $2.02 by $0.13. Discover Financial Services had a return on equity of 26.34% and a net margin of 20.98%. The business had revenue of $2.76 billion during the quarter, compared to analyst estimates of $2.76 billion. During the same quarter in the prior year, the business posted $1.82 EPS. Discover Financial Services’s revenue for the quarter was up 7.3% compared to the same quarter last year.
A number of brokerages have issued reports on DFS. Morgan Stanley increased their price target on Discover Financial Services from $89.00 to $91.00 and gave the stock an “overweight” rating in a research note on Wednesday, March 6th. BMO Capital Markets raised their price objective on Discover Financial Services to $92.00 and gave the company a “market perform” rating in a research report on Monday, April 29th. Compass Point set a $74.00 price objective on Discover Financial Services and gave the company a “hold” rating in a research report on Friday, January 25th. Zacks Investment Research lowered Discover Financial Services from a “hold” rating to a “sell” rating in a research report on Friday, January 25th. Finally, Nomura raised their price objective on Discover Financial Services from $81.00 to $86.00 and gave the company a “buy” rating in a research report on Friday, April 26th. Eight analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The stock has a consensus rating of “Buy” and a consensus target price of $81.81.
In related news, Director Michael H. Moskow sold 1,985 shares of the stock in a transaction dated Friday, May 3rd. The shares were sold at an average price of $81.53, for a total value of $161,837.05. Following the completion of the transaction, the director now owns 48,042 shares of the company’s stock, valued at approximately $3,916,864.26. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider David W. Nelms sold 29,300 shares of the stock in a transaction dated Friday, March 1st. The shares were sold at an average price of $72.46, for a total transaction of $2,123,078.00. Following the completion of the transaction, the insider now directly owns 970,891 shares of the company’s stock, valued at approximately $70,350,761.86. The disclosure for this sale can be found here. In the last ninety days, insiders sold 84,673 shares of company stock valued at $6,577,466. 0.81% of the stock is owned by insiders.
Several large investors have recently made changes to their positions in the stock. JPMorgan Chase & Co. lifted its holdings in shares of Discover Financial Services by 1.1% during the 3rd quarter. JPMorgan Chase & Co. now owns 3,717,616 shares of the financial services provider’s stock valued at $284,212,000 after buying an additional 39,555 shares during the period. Teachers Advisors LLC increased its stake in Discover Financial Services by 2.5% in the 3rd quarter. Teachers Advisors LLC now owns 912,537 shares of the financial services provider’s stock worth $69,763,000 after buying an additional 22,144 shares in the last quarter. Cerebellum GP LLC purchased a new stake in Discover Financial Services in the 4th quarter worth $30,000. State of Alaska Department of Revenue increased its stake in Discover Financial Services by 3.1% in the 4th quarter. State of Alaska Department of Revenue now owns 49,479 shares of the financial services provider’s stock worth $2,917,000 after buying an additional 1,495 shares in the last quarter. Finally, Virtu Financial LLC increased its stake in Discover Financial Services by 233.9% in the 4th quarter. Virtu Financial LLC now owns 12,748 shares of the financial services provider’s stock worth $752,000 after buying an additional 8,930 shares in the last quarter. 87.79% of the stock is owned by hedge funds and other institutional investors.
DFS stock traded up $1.11 during trading on Thursday, reaching $78.34. The company’s stock had a trading volume of 54,358 shares, compared to its average volume of 2,091,324. Discover Financial Services has a 1 year low of $54.36 and a 1 year high of $82.51. The company has a debt-to-equity ratio of 2.46, a quick ratio of 1.38 and a current ratio of 1.38. The firm has a market capitalization of $24.80 billion, a PE ratio of 10.07, a PEG ratio of 1.17 and a beta of 1.64.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 6th. Stockholders of record on Friday, May 24th will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Thursday, May 23rd. This represents a $1.60 dividend on an annualized basis and a dividend yield of 2.04%. Discover Financial Services’s payout ratio is 20.54%.
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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