Discover Financial Services (NYSE:DFS) Releases Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Discover Financial Services (NYSE:DFS) issued its quarterly earnings results on Wednesday. The financial services provider reported $3.77 earnings per share for the quarter, topping the consensus estimate of $3.66 by $0.11, RTT News reports. Discover Financial Services had a return on equity of 34.94% and a net margin of 31.90%. The firm had revenue of $3.73 billion for the quarter, compared to the consensus estimate of $3.68 billion. During the same period in the prior year, the business posted $3.64 earnings per share. The company’s revenue for the quarter was up 27.1% on a year-over-year basis.

Discover Financial Services Stock Performance

Shares of DFS opened at $106.14 on Friday. Discover Financial Services has a 12 month low of $87.64 and a 12 month high of $129.12. The stock has a fifty day moving average price of $103.13 and a 200-day moving average price of $101.22. The company has a current ratio of 1.25, a quick ratio of 1.26 and a debt-to-equity ratio of 1.53. The firm has a market cap of $29.00 billion, a PE ratio of 6.91, a P/E/G ratio of 1.89 and a beta of 1.41.

Discover Financial Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 9th. Stockholders of record on Thursday, February 23rd will be issued a dividend of $0.60 per share. The ex-dividend date is Wednesday, February 22nd. This represents a $2.40 annualized dividend and a dividend yield of 2.26%. Discover Financial Services’s dividend payout ratio is presently 15.63%.

Analyst Upgrades and Downgrades

DFS has been the topic of several recent analyst reports. Barclays downgraded Discover Financial Services from an “overweight” rating to an “equal weight” rating and increased their price target for the stock from $115.00 to $120.00 in a report on Friday, January 6th. JPMorgan Chase & Co. reduced their price target on Discover Financial Services from $113.00 to $109.00 and set a “neutral” rating on the stock in a report on Tuesday, October 18th. Wells Fargo & Company increased their price objective on Discover Financial Services from $103.00 to $115.00 and gave the stock an “equal weight” rating in a research note on Thursday, December 15th. Citigroup dropped their price objective on Discover Financial Services from $115.00 to $103.00 and set a “neutral” rating on the stock in a research note on Thursday, October 13th. Finally, Piper Sandler increased their price objective on Discover Financial Services from $124.00 to $133.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 26th. One analyst has rated the stock with a sell rating, nine have assigned a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $118.33.

Insider Activity

In related news, Director Michael H. Moskow sold 1,291 shares of the firm’s stock in a transaction on Wednesday, December 7th. The stock was sold at an average price of $105.10, for a total value of $135,684.10. Following the completion of the transaction, the director now owns 51,596 shares in the company, valued at approximately $5,422,739.60. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.59% of the company’s stock.

Hedge Funds Weigh In On Discover Financial Services

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Prudential PLC grew its position in shares of Discover Financial Services by 127.4% during the 1st quarter. Prudential PLC now owns 16,749 shares of the financial services provider’s stock valued at $1,846,000 after acquiring an additional 9,382 shares during the period. Cetera Investment Advisers grew its position in shares of Discover Financial Services by 8.8% during the 1st quarter. Cetera Investment Advisers now owns 14,977 shares of the financial services provider’s stock valued at $1,650,000 after acquiring an additional 1,216 shares during the period. Sequoia Financial Advisors LLC grew its position in shares of Discover Financial Services by 33.8% during the 1st quarter. Sequoia Financial Advisors LLC now owns 4,372 shares of the financial services provider’s stock valued at $482,000 after acquiring an additional 1,104 shares during the period. Baird Financial Group Inc. grew its position in shares of Discover Financial Services by 0.8% during the 1st quarter. Baird Financial Group Inc. now owns 27,565 shares of the financial services provider’s stock valued at $3,038,000 after acquiring an additional 206 shares during the period. Finally, Loomis Sayles & Co. L P grew its position in shares of Discover Financial Services by 5.2% during the 1st quarter. Loomis Sayles & Co. L P now owns 2,961 shares of the financial services provider’s stock valued at $326,000 after acquiring an additional 146 shares during the period. Hedge funds and other institutional investors own 81.74% of the company’s stock.

About Discover Financial Services

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Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services 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; private student loans, personal loans, home loans, and other consumer lending; and direct-to-consumer deposit products comprising savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts and checking accounts, and sweep accounts.

See Also

Earnings History for Discover Financial Services (NYSE:DFS)

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