Discover Financial Services (NYSE:DFS) Expected to Post Quarterly Sales of $2.79 Billion


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Brokerages expect that Discover Financial Services (NYSE:DFS) will announce $2.79 billion in sales for the current quarter, Zacks reports. Six analysts have issued estimates for Discover Financial Services’ earnings. The lowest sales estimate is $2.68 billion and the highest is $2.88 billion. Discover Financial Services reported sales of $2.89 billion during the same quarter last year, which would suggest a negative year over year growth rate of 3.5%. The company is scheduled to issue its next quarterly earnings report on Wednesday, April 28th.

On average, analysts expect that Discover Financial Services will report full year sales of $11.41 billion for the current year, with estimates ranging from $11.09 billion to $11.65 billion. For the next year, analysts anticipate that the firm will report sales of $12.06 billion, with estimates ranging from $11.80 billion to $12.21 billion. Zacks Investment Research’s sales averages are a mean average based on a survey of research analysts that cover Discover Financial Services.

Discover Financial Services (NYSE:DFS) last issued its earnings results on Tuesday, January 19th. The financial services provider reported $2.59 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $2.42 by $0.17. The business had revenue of $2.82 billion for the quarter, compared to analysts’ expectations of $2.81 billion. Discover Financial Services had a return on equity of 11.00% and a net margin of 7.89%. The business’s revenue for the quarter was down 4.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $2.25 EPS.

A number of research firms recently commented on DFS. Bank of America upped their price objective on Discover Financial Services from $71.00 to $78.00 and gave the company a “neutral” rating in a report on Monday, November 16th. Evercore ISI upgraded Discover Financial Services from an “underperform” rating to an “in-line” rating and set a $86.00 price objective on the stock in a report on Monday, December 7th. Morgan Stanley upped their price objective on Discover Financial Services from $107.00 to $108.00 and gave the company an “equal weight” rating in a report on Friday, January 22nd. Royal Bank of Canada upped their price objective on Discover Financial Services from $110.00 to $115.00 and gave the company an “outperform” rating in a report on Friday, January 22nd. Finally, Argus upped their price objective on Discover Financial Services from $72.00 to $108.00 and gave the company a “buy” rating in a report on Friday, January 22nd. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and ten have issued a buy rating to the company. Discover Financial Services has an average rating of “Hold” and an average target price of $83.39.

In other Discover Financial Services news, EVP Brian Hughes sold 10,000 shares of the company’s stock in a transaction on Monday, February 8th. The shares were sold at an average price of $93.91, for a total value of $939,100.00. Following the completion of the transaction, the executive vice president now owns 56,620 shares in the company, valued at $5,317,184.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Carlos Minetti sold 19,260 shares of the company’s stock in a transaction on Thursday, February 4th. The shares were sold at an average price of $88.00, for a total transaction of $1,694,880.00. Following the completion of the transaction, the executive vice president now owns 147,293 shares of the company’s stock, valued at approximately $12,961,784. The disclosure for this sale can be found here. Corporate insiders own 0.55% of the company’s stock.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DFS. Asset Dedication LLC acquired a new stake in shares of Discover Financial Services during the third quarter worth about $28,000. Neo Ivy Capital Management boosted its stake in shares of Discover Financial Services by 103.8% during the third quarter. Neo Ivy Capital Management now owns 485 shares of the financial services provider’s stock worth $28,000 after buying an additional 247 shares during the period. Prospera Financial Services Inc acquired a new stake in shares of Discover Financial Services during the third quarter worth about $29,000. Key Financial Inc acquired a new stake in shares of Discover Financial Services during the fourth quarter worth about $31,000. Finally, Alpha DNA Investment Management LLC acquired a new stake in shares of Discover Financial Services during the fourth quarter worth about $32,000. Institutional investors own 84.67% of the company’s stock.

Shares of Discover Financial Services stock traded down $0.09 on Tuesday, hitting $95.30. 1,955,987 shares of the company were exchanged, compared to its average volume of 2,946,474. The stock has a market capitalization of $29.23 billion, a price-to-earnings ratio of 29.35, a price-to-earnings-growth ratio of 4.21 and a beta of 1.80. The company has a 50-day moving average price of $92.68 and a 200 day moving average price of $73.84. Discover Financial Services has a 1-year low of $23.25 and a 1-year high of $100.96. The company has a quick ratio of 0.98, a current ratio of 0.98 and a debt-to-equity ratio of 2.38.

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 4th. Shareholders of record on Thursday, February 18th will be paid a $0.44 dividend. The ex-dividend date is Wednesday, February 17th. This represents a $1.76 annualized dividend and a yield of 1.85%. Discover Financial Services’s dividend payout ratio is presently 19.38%.

Discover Financial Services Company Profile

Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States. It operates in two segments, Direct Banking and Payment Services. 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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