The brokerages expect Discover Financial Services (NYSE:DFS) to report earnings per share of $3.42 for the current fiscal quarter, Zacks reports. Seventeen analysts have released earnings estimates for Discover Financial Services. The highest EPS estimate is $3.82 and the lowest is $2.96. Discover Financial Services reported earnings per share of $5.04 in the same quarter last year, suggesting a negative 32.1% year-over-year growth rate. The company is expected to announce its next quarterly results on Wednesday, April 20.
According to Zacks, analysts expect Discover Financial Services to report annual earnings of $13.76 per share for the current fiscal year, with EPS estimates ranging from $12.57 to $15.25. For next year, analysts expect the company to post earnings of $13.96 per share, with EPS estimates ranging from $12.35 to $15.96. Zacks Investment Research earnings per share averages are an average based on a survey of research analysts who provide coverage for Discover Financial Services.
Discover Financial Services (NYSE:DFS) last released its quarterly results on Wednesday, January 19. The financial services provider reported EPS of $3.64 for the quarter, missing the Zacks consensus estimate of $3.68 per ($0.04). Discover Financial Services posted a net margin of 39.15% and a return on equity of 45.80%. The company posted revenue of $2.94 billion for the quarter, versus $3.02 billion expected by analysts. In the same quarter of the previous year, the company achieved EPS of $2.59. The company’s quarterly revenue increased 4.0% compared to the same quarter last year.
Several equity research analysts have recently released reports on the stock. JPMorgan Chase & Co. lowered its price target on shares of Discover Financial Services from $150.00 to $142.00 and set an “overweight” rating on the stock in a report released Wednesday. Deutsche Bank Aktiengesellschaft raised its price target on shares of Discover Financial Services from $134.00 to $140.00 in a report on Tuesday, January 11. Morgan Stanley raised its price target on shares of Discover Financial Services from $139.00 to $146.00 and gave the stock an “equal weight” rating in a Monday, Dec. 6 research report. Stephens raised his price target on shares of Discover Financial Services from $118.00 to $137.00 and gave the stock an “equal weight” rating in a Friday, Oct. 22 research report. Finally, Seaport Research Partners upgraded shares of Discover Financial Services from a “neutral” rating to a “buy” rating and set a price target of $138.00 on the stock in a Tuesday 2 November. Six research analysts gave the stock a hold rating and twelve gave the stock a buy rating. According to MarketBeat, the stock has an average rating of “Buy” and a consensus price target of $138.29.
In related news, Executive Vice President Carlos Minetti sold 22,000 shares of Discover Financial Services in a trade dated Monday, October 25. The shares were sold at an average price of $123.68, for a total transaction of $2,720,960.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, accessible via this link. Additionally, director Cynthia A. Glassman sold 3,200 shares of Discover Financial Services in a trade dated Tuesday, October 26. The stock was sold at an average price of $123.93, for a total transaction of $396,576.00. The disclosure of this sale can be found here. Insiders of the company hold 0.54% of the shares of the company.
Several hedge funds have recently increased or reduced their holdings in the stock. Valicenti Advisory Services Inc. increased its stake in shares of Discover Financial Services by 3.2% during the 4th quarter. Valicenti Advisory Services Inc. now owns 65,316 shares of the financial services provider worth $7,548,000 after purchasing an additional 2,022 shares during the period. Allworth Financial LP increased its stake in shares of Discover Financial Services by 22.6% during the 4th quarter. Allworth Financial LP now owns 1,557 shares of the financial services provider worth $180,000 after purchasing an additional 287 shares during the period. Denali Advisors LLC increased its equity stake in Discover Financial Services by 4,100.0% during the 4th quarter. Denali Advisors LLC now owns 4,200 shares of the financial services provider worth $485,000 after purchasing an additional 4,100 shares during the period. Insights Wealth Advisors LLC increased its stake in shares of Discover Financial Services by 3.4% during the 4th quarter. Outlook Wealth Advisors LLC now owns 5,669 shares of the financial services provider worth $655,000 after purchasing an additional 186 shares during the period. Finally, Mayflower Financial Advisors LLC increased its stake in Discover Financial Services by 4.1% during the 4th quarter. Mayflower Financial Advisors LLC now owns 2,822 shares of the financial services provider valued at $326,000 after buying 110 additional shares last quarter. 84.22% of the shares are held by hedge funds and other institutional investors.
NYSE: DFS opened at $114.45 on Friday. Discover Financial Services has a 52-week low of $81.27 and a 52-week high of $135.69. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt ratio of 1.52. The company’s 50-day moving average price is $117.25 and its 200-day moving average price is $122.00. The stock has a market capitalization of $33.54 billion, a price/earnings ratio of 6.85, a PEG ratio of 0.16 and a beta of 1.70.
The company also recently announced a quarterly dividend, which will be paid on Thursday, March 3. Shareholders of record on Thursday, February 17 will receive a dividend of $0.50. The ex-date of this dividend is Wednesday, February 16. This represents a dividend of $2.00 on an annualized basis and a dividend yield of 1.75%. Discover Financial Services’ payout ratio is currently 11.96%.
About Explore Financial Services
Discover Financial Services is a holding company that provides direct banking and payment services. It operates through Direct Banking and Payment Services segments. The Direct Banking segment offers Discover-branded credit cards issued to individuals on the Discover network and other consumer products and services, including private student loans, personal loans, home loans and other lending products and consumer deposit.
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