$2.31 Earnings Per Share Expected for Discover Financial Services (NYSE:DFS) This Quarter

Analysts expect Discover Financial Services (NYSE:DFS) to report $2.31 earnings per share (EPS) for the current fiscal quarter, Zacks reports. Six analysts have provided estimates for Discover Financial Services’ earnings, with estimates ranging from $2.24 to $2.35. Discover Financial Services posted earnings per share of $2.05 in the same quarter last year, which indicates a positive year-over-year growth rate of 12.7%. The company is scheduled to report its next quarterly earnings report on Thursday, October 24th.

According to Zacks, analysts expect that Discover Financial Services will report full year earnings of $9.03 per share for the current financial year, with EPS estimates ranging from $8.93 to $9.10. For the next fiscal year, analysts forecast that the business will post earnings of $9.58 per share, with EPS estimates ranging from $9.40 to $9.80. Zacks Investment Research’s earnings per share averages are a mean average based on a survey of sell-side analysts that that provide coverage for Discover Financial Services.

Discover Financial Services (NYSE:DFS) last issued its quarterly earnings results on Tuesday, July 23rd. The financial services provider reported $2.32 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.11 by $0.21. Discover Financial Services had a return on equity of 26.76% and a net margin of 21.00%. The company had revenue of $2.98 billion for the quarter, compared to the consensus estimate of $2.81 billion. During the same quarter in the prior year, the business posted $1.91 earnings per share. Discover Financial Services’s revenue for the quarter was up 12.9% on a year-over-year basis.

Several research analysts recently weighed in on DFS shares. Deutsche Bank reiterated a “hold” rating and issued a $87.00 price objective on shares of Discover Financial Services in a research report on Monday, July 8th. Zacks Investment Research lowered Discover Financial Services from a “buy” rating to a “hold” rating and set a $66.00 price target for the company. in a research report on Friday, June 7th. Wells Fargo & Co raised their price target on Discover Financial Services from $82.00 to $88.00 and gave the stock a “market perform” rating in a research report on Wednesday, July 24th. Oppenheimer lowered Discover Financial Services from an “outperform” rating to a “market perform” rating in a research report on Tuesday, May 7th. Finally, Goldman Sachs Group upgraded Discover Financial Services from a “neutral” rating to a “buy” rating and raised their price target for the stock from $51.00 to $56.00 in a research report on Friday, May 3rd. Twelve analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. The company currently has an average rating of “Hold” and an average price target of $84.35.

In related news, CFO R. Mark Graf sold 4,776 shares of Discover Financial Services stock in a transaction on Thursday, July 25th. The stock was sold at an average price of $92.44, for a total value of $441,493.44. Following the completion of the transaction, the chief financial officer now directly owns 51,296 shares in the company, valued at $4,741,802.24. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Mary K. Bush sold 993 shares of the firm’s stock in a transaction on Tuesday, August 6th. The shares were sold at an average price of $83.27, for a total value of $82,687.11. Following the completion of the sale, the director now owns 52,075 shares in the company, valued at $4,336,285.25. The disclosure for this sale can be found here. Over the last quarter, insiders sold 27,663 shares of company stock valued at $2,534,291. 0.81% of the stock is currently owned by company insiders.

A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its stake in Discover Financial Services by 0.6% in the second quarter. Vanguard Group Inc. now owns 25,322,884 shares of the financial services provider’s stock valued at $1,964,803,000 after buying an additional 159,282 shares in the last quarter. BlackRock Inc. raised its stake in Discover Financial Services by 3.7% in the second quarter. BlackRock Inc. now owns 24,713,231 shares of the financial services provider’s stock valued at $1,917,500,000 after buying an additional 887,296 shares in the last quarter. Geode Capital Management LLC raised its stake in Discover Financial Services by 1.7% in the fourth quarter. Geode Capital Management LLC now owns 4,609,400 shares of the financial services provider’s stock valued at $271,408,000 after buying an additional 76,252 shares in the last quarter. JPMorgan Chase & Co. raised its stake in Discover Financial Services by 12.6% in the second quarter. JPMorgan Chase & Co. now owns 4,489,949 shares of the financial services provider’s stock valued at $348,376,000 after buying an additional 503,411 shares in the last quarter. Finally, Bessemer Group Inc. raised its stake in Discover Financial Services by 1.1% in the second quarter. Bessemer Group Inc. now owns 3,204,718 shares of the financial services provider’s stock valued at $248,653,000 after buying an additional 35,893 shares in the last quarter. Institutional investors own 85.15% of the company’s stock.

Shares of Discover Financial Services stock traded up $0.06 during mid-day trading on Thursday, reaching $79.83. 51,946 shares of the stock traded hands, compared to its average volume of 2,591,758. Discover Financial Services has a fifty-two week low of $54.36 and a fifty-two week high of $92.98. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 2.30. The stock has a market capitalization of $25.39 billion, a PE ratio of 10.23, a PEG ratio of 1.18 and a beta of 1.55. The business has a 50-day moving average of $83.59 and a 200 day moving average of $77.10.

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 5th. Investors of record on Thursday, August 22nd will be issued a $0.44 dividend. The ex-dividend date is Wednesday, August 21st. This is a positive change from Discover Financial Services’s previous quarterly dividend of $0.40. This represents a $1.76 dividend on an annualized basis and a yield of 2.20%. Discover Financial Services’s dividend payout ratio (DPR) is 20.54%.

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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