Zacks: Brokerages Expect Discover Financial Services (DFS) Will Announce Earnings of $2.01 Per Share

Equities research analysts expect Discover Financial Services (NYSE:DFS) to announce earnings of $2.01 per share for the current fiscal quarter, Zacks reports. Five analysts have made estimates for Discover Financial Services’ earnings. The lowest EPS estimate is $1.89 and the highest is $2.20. Discover Financial Services posted earnings per share of $1.82 in the same quarter last year, which indicates a positive year-over-year growth rate of 10.4%. The business is expected to announce its next quarterly earnings report on Thursday, April 25th.

On average, analysts expect that Discover Financial Services will report full-year earnings of $8.65 per share for the current year, with EPS estimates ranging from $8.49 to $8.82. For the next financial year, analysts forecast that the business will report earnings of $9.46 per share, with EPS estimates ranging from $9.25 to $9.72. Zacks’ earnings per share averages are an average based on a survey of research firms that follow Discover Financial Services.

Discover Financial Services (NYSE:DFS) last released its quarterly earnings data on Thursday, January 24th. The financial services provider reported $2.03 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $2.09 by ($0.06). Discover Financial Services had a return on equity of 26.22% and a net margin of 21.25%. The firm had revenue of $2.81 billion for the quarter, compared to analyst estimates of $2.81 billion. During the same quarter in the previous year, the business posted $1.51 earnings per share. Discover Financial Services’s revenue for the quarter was up 7.4% on a year-over-year basis.

DFS has been the subject of several recent analyst reports. Bank of America set a $80.00 price objective on shares of Discover Financial Services and gave the stock a “buy” rating in a research report on Friday, January 25th. Zacks Investment Research upgraded shares of Discover Financial Services from a “hold” rating to a “buy” rating and set a $79.00 price objective for the company in a research report on Tuesday, November 27th. ValuEngine upgraded shares of Discover Financial Services from a “sell” rating to a “hold” rating in a research report on Tuesday, November 27th. BMO Capital Markets cut their price objective on shares of Discover Financial Services to $85.00 and set a “market perform” rating for the company in a research report on Friday, January 25th. Finally, Barclays set a $85.00 target price on shares of Discover Financial Services and gave the stock a “buy” rating in a research note on Friday, December 14th. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and seven have given a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $81.64.

In other Discover Financial Services news, CEO Roger C. Hochschild acquired 30,000 shares of the stock in a transaction dated Monday, January 28th. The stock was acquired at an average price of $66.67 per share, with a total value of $2,000,100.00. Following the completion of the purchase, the chief executive officer now owns 834,457 shares in the company, valued at approximately $55,633,248.19. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Carlos Minetti sold 7,500 shares of the firm’s stock in a transaction that occurred on Friday, February 1st. The shares were sold at an average price of $67.59, for a total transaction of $506,925.00. Following the completion of the transaction, the executive vice president now directly owns 131,598 shares of the company’s stock, valued at approximately $8,894,708.82. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 113,312 shares of company stock valued at $7,855,704. 0.81% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Financial Gravity Companies Inc. purchased a new position in shares of Discover Financial Services in the fourth quarter valued at approximately $29,000. Cerebellum GP LLC purchased a new position in shares of Discover Financial Services in the fourth quarter valued at approximately $30,000. Massey Quick Simon & CO. LLC purchased a new position in shares of Discover Financial Services in the fourth quarter valued at approximately $30,000. Berman Capital Advisors LLC purchased a new position in shares of Discover Financial Services in the fourth quarter valued at approximately $37,000. Finally, Oregon Public Employees Retirement Fund boosted its stake in shares of Discover Financial Services by 5,727.1% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 2,230,742 shares of the financial services provider’s stock valued at $38,000 after purchasing an additional 2,192,460 shares during the period. 84.51% of the stock is owned by institutional investors and hedge funds.

Discover Financial Services stock traded up $0.76 during midday trading on Friday, hitting $73.10. 70,347 shares of the stock were exchanged, compared to its average volume of 2,306,561. Discover Financial Services has a fifty-two week low of $54.36 and a fifty-two week high of $80.36. The stock has a market cap of $23.43 billion, a P/E ratio of 9.39, a PEG ratio of 0.94 and a beta of 1.60. The company has a current ratio of 1.44, a quick ratio of 1.44 and a debt-to-equity ratio of 2.58.

The business also recently announced a quarterly dividend, which was paid on Thursday, March 7th. Shareholders of record on Thursday, February 21st were paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 2.19%. The ex-dividend date was Wednesday, February 20th. Discover Financial Services’s dividend payout ratio (DPR) is presently 20.54%.

About Discover Financial Services

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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