Discover Financial Services (NYSE:DFS) Expected to Announce Quarterly Sales of $2.88 Billion

Analysts expect Discover Financial Services (NYSE:DFS) to report $2.88 billion in sales for the current fiscal quarter, according to Zacks Investment Research. Six analysts have issued estimates for Discover Financial Services’ earnings, with the lowest sales estimate coming in at $2.87 billion and the highest estimate coming in at $2.90 billion. Discover Financial Services reported sales of $2.72 billion during the same quarter last year, which indicates a positive year over year growth rate of 5.9%. The firm is scheduled to announce its next earnings report on Thursday, October 24th.

According to Zacks, analysts expect that Discover Financial Services will report full-year sales of $11.45 billion for the current fiscal year, with estimates ranging from $11.42 billion to $11.48 billion. For the next financial year, analysts anticipate that the firm will report sales of $12.01 billion, with estimates ranging from $11.85 billion to $12.16 billion. Zacks’ sales calculations are an average based on a survey of sell-side research analysts that cover Discover Financial Services.

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

A number of equities analysts recently commented on DFS shares. JPMorgan Chase & Co. lifted their price objective on Discover Financial Services from $91.00 to $93.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 24th. Deutsche Bank reaffirmed a “hold” rating and issued a $87.00 price objective on shares of Discover Financial Services in a research note on Monday, July 8th. Wells Fargo & Co lifted their target price on Discover Financial Services from $82.00 to $88.00 and gave the stock a “market perform” rating in a report on Wednesday, July 24th. Bank of America initiated coverage on Discover Financial Services in a report on Wednesday, June 19th. They issued a “neutral” rating for the company. Finally, Nomura lifted their target price on Discover Financial Services from $86.00 to $96.00 and gave the stock a “buy” rating in a report on Wednesday, July 24th. Eleven analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and an average price target of $85.53.

In other Discover Financial Services news, SVP Edward W. Mcgrogan sold 1,894 shares of Discover Financial Services stock in a transaction that occurred on Thursday, July 25th. The stock was sold at an average price of $92.35, for a total value of $174,910.90. Following the completion of the sale, the senior vice president now directly owns 11,272 shares in the company, valued at $1,040,969.20. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Diane E. Offereins sold 20,000 shares of Discover Financial Services stock in a transaction that occurred on Friday, July 26th. The stock was sold at an average price of $91.76, for a total value of $1,835,200.00. Following the completion of the sale, the executive vice president now owns 120,874 shares of the company’s stock, valued at $11,091,398.24. 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 corporate insiders.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DFS. Dimensional Fund Advisors LP increased its holdings in shares of Discover Financial Services by 9.6% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,271,726 shares of the financial services provider’s stock valued at $133,983,000 after acquiring an additional 199,220 shares in the last quarter. Geode Capital Management LLC grew its holdings in Discover Financial Services by 1.7% during the fourth quarter. Geode Capital Management LLC now owns 4,609,400 shares of the financial services provider’s stock worth $271,408,000 after buying an additional 76,252 shares in the last quarter. Moors & Cabot Inc. bought a new stake in Discover Financial Services during the first quarter worth $462,000. Parallel Advisors LLC grew its holdings in Discover Financial Services by 48.7% during the first quarter. Parallel Advisors LLC now owns 1,108 shares of the financial services provider’s stock worth $79,000 after buying an additional 363 shares in the last quarter. Finally, Victory Capital Management Inc. grew its holdings in Discover Financial Services by 286.9% during the first quarter. Victory Capital Management Inc. now owns 224,992 shares of the financial services provider’s stock worth $16,010,000 after buying an additional 166,842 shares in the last quarter. Hedge funds and other institutional investors own 85.02% of the company’s stock.

Shares of Discover Financial Services stock traded down $1.19 during midday trading on Monday, reaching $83.59. The company had a trading volume of 1,519,331 shares, compared to its average volume of 1,994,447. The stock has a fifty day moving average price of $82.59 and a 200 day moving average price of $78.46. The company has a debt-to-equity ratio of 2.30, a current ratio of 1.33 and a quick ratio of 1.33. The firm has a market cap of $26.89 billion, a PE ratio of 10.73, a P/E/G ratio of 1.23 and a beta of 1.60. Discover Financial Services has a fifty-two week low of $54.36 and a fifty-two week high of $92.98.

The firm also recently announced a quarterly dividend, which was paid on Thursday, September 5th. Shareholders of record on Thursday, August 22nd were issued a $0.44 dividend. This is an increase 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 2.11%. The ex-dividend date was Wednesday, August 21st. Discover Financial Services’s payout ratio is presently 22.59%.

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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