$2.24 EPS Expected for Discover Financial Services (NYSE:DFS) This Quarter

Equities analysts expect that Discover Financial Services (NYSE:DFS) will post earnings per share of $2.24 for the current quarter, according to Zacks. Five analysts have made estimates for Discover Financial Services’ earnings. The highest EPS estimate is $2.33 and the lowest is $2.14. Discover Financial Services reported earnings per share of $2.03 during the same quarter last year, which would indicate a positive year over year growth rate of 10.3%. The business is expected to announce its next quarterly earnings results on Thursday, January 23rd.

According to Zacks, analysts expect that Discover Financial Services will report full year earnings of $9.06 per share for the current financial year, with EPS estimates ranging from $8.96 to $9.14. For the next financial year, analysts expect that the firm will post earnings of $9.48 per share, with EPS estimates ranging from $9.26 to $9.61. Zacks Investment Research’s earnings per share averages are an average based on a survey of analysts that follow Discover Financial Services.

Discover Financial Services (NYSE:DFS) last announced its quarterly earnings results on Tuesday, October 22nd. The financial services provider reported $2.36 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.29 by $0.07. The company had revenue of $2.90 billion during the quarter, compared to the consensus estimate of $2.89 billion. Discover Financial Services had a return on equity of 26.79% and a net margin of 20.97%. The company’s revenue for the quarter was up 6.5% compared to the same quarter last year. During the same period in the prior year, the company earned $2.05 earnings per share.

Several research firms have recently weighed in on DFS. Wells Fargo & Co upped their price objective on Discover Financial Services from $81.00 to $86.00 and gave the stock a “market perform” rating in a research report on Wednesday, October 23rd. Zacks Investment Research raised Discover Financial Services from a “hold” rating to a “buy” rating and set a $86.00 price objective for the company in a research report on Monday, September 9th. ValuEngine cut Discover Financial Services from a “hold” rating to a “sell” rating in a research report on Wednesday, September 25th. JPMorgan Chase & Co. upped their price objective on Discover Financial Services from $85.00 to $90.00 and gave the stock an “overweight” rating in a research report on Wednesday, October 23rd. Finally, Nomura reaffirmed a “neutral” rating and set a $89.00 price objective (down from $96.00) on shares of Discover Financial Services in a research report on Thursday, December 5th. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating and eight have assigned a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average target price of $86.24.

Shares of DFS stock traded up $0.30 on Friday, hitting $86.68. 1,288,977 shares of the stock were exchanged, compared to its average volume of 1,273,417. The company has a current ratio of 1.28, a quick ratio of 1.28 and a debt-to-equity ratio of 2.19. The firm has a market capitalization of $26.40 billion, a P/E ratio of 11.13, a price-to-earnings-growth ratio of 1.25 and a beta of 1.62. The business has a 50-day moving average of $83.52 and a 200 day moving average of $81.36. Discover Financial Services has a fifty-two week low of $54.36 and a fifty-two week high of $92.98.

The business also recently declared a quarterly dividend, which was paid on Thursday, December 5th. Investors of record on Thursday, November 21st were given a dividend of $0.44 per share. The ex-dividend date was Wednesday, November 20th. This represents a $1.76 annualized dividend and a yield of 2.03%. Discover Financial Services’s dividend payout ratio (DPR) is presently 22.59%.

A number of hedge funds and other institutional investors have recently modified their holdings of DFS. 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 during the period. 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 during the period. 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 during the period. Nuveen Asset Management LLC raised its stake in Discover Financial Services by 707.0% in the second quarter. Nuveen Asset Management LLC now owns 2,719,868 shares of the financial services provider’s stock valued at $211,035,000 after buying an additional 2,382,825 shares during the period. Finally, AQR Capital Management LLC raised its stake in Discover Financial Services by 151.1% in the second quarter. AQR Capital Management LLC now owns 2,080,467 shares of the financial services provider’s stock valued at $161,424,000 after buying an additional 1,251,827 shares during the period. 84.58% of the stock is owned by hedge funds and other institutional investors.

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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