Brokerages expect Discover Financial Services (NYSE:DFS) to post earnings per share of $2.01 for the current fiscal quarter, Zacks reports. Six analysts have provided estimates for Discover Financial Services’ earnings, with the highest EPS estimate coming in at $2.08 and the lowest estimate coming in at $1.96. Discover Financial Services reported earnings of $1.59 per share during the same quarter last year, which suggests a positive year over year growth rate of 26.4%. The firm 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 year, with EPS estimates ranging from $7.65 to $7.96. For the next fiscal year, analysts anticipate that the company will report earnings of $8.59 per share, with EPS estimates ranging from $8.40 to $8.77. Zacks Investment Research’s earnings per share calculations are an average based on a survey of research firms that cover Discover Financial Services.

Discover Financial Services (NYSE:DFS) last released its earnings results on Thursday, July 26th. The financial services provider reported $1.91 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.88 by $0.03. The firm had revenue of $2.60 billion for the quarter, compared to the consensus estimate of $2.63 billion. Discover Financial Services had a return on equity of 24.25% and a net margin of 19.07%. The company’s revenue for the quarter was up 7.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.40 EPS.

Several research firms have recently weighed in on DFS. Sandler O’Neill reissued a “buy” rating and set a $87.00 target price on shares of Discover Financial Services in a research report on Friday, July 27th. Zacks Investment Research downgraded Discover Financial Services from a “buy” rating to a “hold” rating in a research report on Monday, July 23rd. UBS Group raised Discover Financial Services from a “sell” rating to a “neutral” rating and set a $81.93 target price on the stock in a research report on Monday, May 7th. BMO Capital Markets cut their target price on Discover Financial Services from $93.00 to $91.00 and set a “market perform” rating on the stock in a research report on Monday, April 30th. Finally, Morgan Stanley cut their target price on Discover Financial Services from $93.00 to $90.00 and set an “overweight” rating on the stock in a research report on Monday, April 30th. Nine investment analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has given a strong buy rating to the company. The stock has a consensus rating of “Buy” and a consensus target price of $85.27.

In other Discover Financial Services news, CEO David W. Nelms sold 30,000 shares of the company’s stock in a transaction on Monday, July 2nd. The stock was sold at an average price of $69.93, for a total value of $2,097,900.00. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Carlos Minetti sold 3,750 shares of the company’s 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 disclosure for this sale can be found here. Insiders sold a total of 72,174 shares of company stock worth $5,138,244 in the last ninety days. 0.81% of the stock is currently owned by corporate insiders.

Institutional investors and hedge funds have recently bought and sold shares of the company. Bbva Compass Bancshares Inc. grew its position in shares of Discover Financial Services by 13.5% during the 1st quarter. Bbva Compass Bancshares Inc. now owns 99,494 shares of the financial services provider’s stock worth $7,157,000 after buying an additional 11,810 shares in the last quarter. Seven Eight Capital LP bought a new position in shares of Discover Financial Services during the 1st quarter worth $303,000. Cubist Systematic Strategies LLC grew its position in shares of Discover Financial Services by 21.1% during the 1st quarter. Cubist Systematic Strategies LLC now owns 26,498 shares of the financial services provider’s stock worth $1,906,000 after buying an additional 4,612 shares in the last quarter. Wells Fargo & Company MN grew its position in shares of Discover Financial Services by 0.6% during the 1st quarter. Wells Fargo & Company MN now owns 1,279,052 shares of the financial services provider’s stock worth $92,002,000 after buying an additional 7,060 shares in the last quarter. Finally, Advisor Partners LLC grew its position in shares of Discover Financial Services by 13.4% during the 1st quarter. Advisor Partners LLC now owns 8,472 shares of the financial services provider’s stock worth $609,000 after buying an additional 1,003 shares in the last quarter. 87.20% of the stock is currently owned by institutional investors and hedge funds.

Shares of NYSE DFS traded down $1.15 during trading hours on Friday, hitting $74.52. 3,477,781 shares of the company traded hands, 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 P/E/G ratio of 0.89 and a beta of 1.49. The company has a debt-to-equity ratio of 2.54, a quick ratio of 1.49 and a current ratio of 1.49. Discover Financial Services has a 12 month low of $57.50 and a 12 month high of $81.93.

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 6th. Shareholders of record on Thursday, August 23rd will be given a $0.40 dividend. This represents a $1.60 annualized dividend and a yield of 2.15%. The ex-dividend date of this dividend is Wednesday, August 22nd. This is an increase from Discover Financial Services’s previous quarterly dividend of $0.35. Discover Financial Services’s dividend payout ratio is 23.41%.

Discover Financial Services declared that its Board of Directors has approved a stock buyback plan on Thursday, July 19th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to buy up to 11.9% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.

About Discover Financial Services

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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Earnings History and Estimates for Discover Financial Services (NYSE:DFS)

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