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

Shares of NYSE DFS traded down $1.64 during mid-day trading 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 firm has a market capitalization of $37.78 billion, a P/E ratio of 14.14, a price-to-earnings-growth ratio of 0.16 and a beta of 1.83. Discover Financial Services has a 1 year low of $48.18 and a 1 year high of $127.65. The company has a debt-to-equity ratio of 1.89, a current ratio of 1.24 and a quick ratio of 1.24. The business’s 50-day simple moving average is $119.52.

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 2nd. Stockholders of record on Thursday, August 19th will be given a $0.50 dividend. This is a boost 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 payout ratio is 48.89%.

In related news, EVP Daniel Peter Capozzi sold 9,970 shares of the business’s stock in a transaction dated 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 completion of the transaction, the executive vice president now directly owns 27,042 shares in the company, valued at $2,874,564.60. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Director Michael H. Moskow sold 3,824 shares of the business’s stock in a transaction dated Thursday, May 6th. The stock was sold at an average price of $115.97, for a total value of $443,469.28. Following the transaction, the director now owns 51,253 shares of the company’s stock, valued at $5,943,810.41. The disclosure for this sale can be found here. Over the last quarter, insiders sold 28,794 shares of company stock valued at $3,213,580. 0.54% of the stock is owned by company insiders.

DFS has been the topic of a number of recent research reports. Barclays raised their target price on Discover Financial Services from $132.00 to $146.00 and gave the company an “overweight” rating in a report on Friday, July 9th. Citigroup upgraded Discover Financial Services from a “neutral” rating to a “buy” rating in a report on Monday, July 12th. Piper Sandler dropped their price target on Discover Financial Services from $122.00 to $118.00 and set a “neutral” rating on the stock in a report on Friday, July 2nd. upgraded Discover Financial Services from a “neutral” rating to a “buy” rating and lifted their price target for the stock from $101.00 to $150.00 in a report on Friday, July 9th. Finally, Morgan Stanley lifted their price target on Discover Financial Services from $108.00 to $114.00 and gave the stock an “equal weight” rating in a report on Thursday, April 22nd. Nine investment analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. Discover Financial Services has a consensus rating of “Buy” and a consensus target price of $113.39.

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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