Zacks: Analysts Expect Discover Financial Services (DFS) Will Post Earnings of $2.12 Per Share

Wall Street analysts predict that Discover Financial Services (NYSE:DFS) will announce earnings per share of $2.12 for the current quarter, Zacks reports. Five analysts have provided estimates for Discover Financial Services’ earnings, with the highest EPS estimate coming in at $2.23 and the lowest estimate coming in at $2.05. Discover Financial Services posted earnings of $1.91 per share during the same quarter last year, which would indicate a positive year over year growth rate of 11%. The company is expected to announce its next earnings results on Thursday, July 25th.

On average, 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 $8.86. For the next financial year, analysts forecast that the firm will report earnings of $9.54 per share, with EPS estimates ranging from $9.34 to $9.71. Zacks’ earnings per share calculations are a mean average based on a survey of sell-side research analysts that cover Discover Financial Services.

Discover Financial Services (NYSE:DFS) last announced its quarterly earnings results on Thursday, April 25th. The financial services provider reported $2.15 EPS for the quarter, beating the Zacks’ consensus estimate of $2.02 by $0.13. Discover Financial Services had a net margin of 20.98% and a return on equity of 26.34%. The firm had revenue of $2.76 billion during the quarter, compared to the consensus estimate of $2.76 billion. During the same quarter last year, the firm earned $1.82 EPS. The firm’s revenue for the quarter was up 7.3% compared to the same quarter last year.

A number of equities research analysts have commented on the stock. Zacks Investment Research downgraded shares of Discover Financial Services from a “hold” rating to a “sell” rating in a research report on Friday, January 25th. BMO Capital Markets decreased their price objective on shares of Discover Financial Services to $85.00 and set a “market perform” rating for the company in a report on Friday, January 25th. Compass Point set a $74.00 target price on shares of Discover Financial Services and gave the company a “hold” rating in a research note on Friday, January 25th. Bank of America set a $80.00 target price on shares of Discover Financial Services and gave the company a “buy” rating in a research note on Friday, January 25th. Finally, Morgan Stanley boosted their target price on shares of Discover Financial Services from $89.00 to $91.00 and gave the company an “overweight” rating in a research note on Wednesday, March 6th. Nine equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus price target of $81.69.

In other news, CFO R. Mark Graf sold 30,741 shares of the company’s stock in a transaction on Monday, April 29th. The stock was sold at an average price of $81.92, for a total value of $2,518,302.72. Following the completion of the sale, the chief financial officer now directly owns 56,072 shares in the company, valued at approximately $4,593,418.24. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Carlos Minetti sold 3,750 shares of the company’s stock in a transaction on Friday, March 1st. The stock was sold at an average price of $72.05, for a total value of $270,187.50. Following the completion of the sale, the executive vice president now owns 132,077 shares of the company’s stock, valued at $9,516,147.85. The disclosure for this sale can be found here. Insiders sold a total of 85,169 shares of company stock valued at $6,615,921 over the last 90 days. 0.81% of the stock is currently owned by company insiders.

Several large investors have recently bought and sold shares of the company. Icon Wealth Partners LLC bought a new position in Discover Financial Services in the 1st quarter worth $26,000. Financial Gravity Companies Inc. purchased a new stake in shares of Discover Financial Services in the 4th quarter valued at approximately $29,000. Cerebellum GP LLC purchased a new stake in shares of Discover Financial Services in the 4th quarter valued at approximately $30,000. Massey Quick Simon & CO. LLC purchased a new stake in Discover Financial Services during the 4th quarter worth approximately $30,000. Finally, Pinnacle Bank purchased a new stake in Discover Financial Services during the 4th quarter worth approximately $32,000. Hedge funds and other institutional investors own 86.01% of the company’s stock.

Shares of NYSE:DFS traded down $1.89 during trading on Thursday, reaching $76.56. The company’s stock had a trading volume of 116,423 shares, compared to its average volume of 2,000,844. The company has a current ratio of 1.38, a quick ratio of 1.38 and a debt-to-equity ratio of 2.46. Discover Financial Services has a 12 month low of $54.36 and a 12 month high of $82.51. The company has a market cap of $25.40 billion, a price-to-earnings ratio of 9.82, a PEG ratio of 1.20 and a beta of 1.64.

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 6th. Stockholders of record on Friday, May 24th will be paid a $0.40 dividend. The ex-dividend date is Thursday, May 23rd. This represents a $1.60 annualized dividend and a dividend yield of 2.09%. Discover Financial Services’s dividend payout ratio (DPR) 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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Earnings History and Estimates for Discover Financial Services (NYSE:DFS)

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