Wall Street analysts forecast that Discover Financial Services (NYSE:DFS) will report $2.63 billion in sales for the current fiscal quarter, Zacks reports. Seven analysts have provided estimates for Discover Financial Services’ earnings. The highest sales estimate is $2.69 billion and the lowest is $2.58 billion. Discover Financial Services posted sales of $2.42 billion in the same quarter last year, which would indicate a positive year-over-year growth rate of 8.7%. The firm is expected to issue its next earnings results on Wednesday, July 25th.
According to Zacks, analysts expect that Discover Financial Services will report full year sales of $10.73 billion for the current year, with estimates ranging from $10.68 billion to $10.86 billion. For the next financial year, analysts forecast that the business will report sales of $11.36 billion per share, with estimates ranging from $11.22 billion to $11.49 billion. Zacks’ sales averages are a mean average based on a survey of sell-side analysts that follow Discover Financial Services.
Discover Financial Services (NYSE:DFS) last announced its earnings results on Thursday, April 26th. The financial services provider reported $1.82 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.77 by $0.05. The company had revenue of $2.58 billion for the quarter, compared to analyst estimates of $2.58 billion. Discover Financial Services had a return on equity of 22.79% and a net margin of 18.43%. The firm’s quarterly revenue was up 10.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.43 earnings per share.
A number of analysts have issued reports on DFS shares. Oppenheimer boosted their target price on Discover Financial Services from $84.00 to $88.00 and gave the company an “outperform” rating in a research report on Thursday, January 25th. Stephens raised Discover Financial Services from an “underweight” rating to an “equal” rating and set a $73.00 price objective on the stock in a research report on Monday, April 9th. Citigroup initiated coverage on Discover Financial Services in a research report on Thursday, April 5th. They set a “neutral” rating and a $78.00 price objective on the stock. Zacks Investment Research lowered Discover Financial Services from a “hold” rating to a “sell” rating in a research report on Wednesday, March 28th. Finally, Goldman Sachs Group lowered Discover Financial Services from a “buy” rating to a “neutral” rating in a research report on Monday, April 16th. One analyst has rated the stock with a sell rating, ten have assigned a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. The company currently has an average rating of “Buy” and a consensus price target of $85.43.
In other Discover Financial Services news, Director Mary K. Bush sold 4,674 shares of the company’s stock in a transaction on Tuesday, May 15th. The shares were sold at an average price of $76.17, for a total value of $356,018.58. Following the completion of the transaction, the director now owns 54,060 shares in the company, valued at $4,117,750.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Roger C. Hochschild sold 15,259 shares of the company’s stock in a transaction on Monday, April 2nd. The shares were sold at an average price of $69.70, for a total transaction of $1,063,552.30. Following the completion of the transaction, the chief operating officer now owns 717,160 shares of the company’s stock, valued at approximately $49,986,052. The disclosure for this sale can be found here. In the last quarter, insiders have sold 161,266 shares of company stock valued at $11,823,080. Insiders own 0.81% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Signaturefd LLC acquired a new position in Discover Financial Services in the first quarter valued at $143,000. Private Capital Group LLC boosted its stake in Discover Financial Services by 8,258.3% in the first quarter. Private Capital Group LLC now owns 2,006 shares of the financial services provider’s stock valued at $144,000 after acquiring an additional 1,982 shares in the last quarter. Focused Wealth Management Inc acquired a new position in Discover Financial Services in the fourth quarter valued at $177,000. Equity Investment Corp acquired a new position in Discover Financial Services in the fourth quarter valued at $205,000. Finally, Hunter Associates Investment Management LLC acquired a new position in Discover Financial Services in the fourth quarter valued at $215,000. Institutional investors own 86.43% of the company’s stock.
Discover Financial Services traded down $0.20, reaching $76.92, on Friday, according to Marketbeat.com. The stock had a trading volume of 1,586,500 shares, compared to its average volume of 2,192,248. The firm has a market cap of $27.30 billion, a price-to-earnings ratio of 12.86, a PEG ratio of 0.97 and a beta of 1.47. The company has a quick ratio of 1.50, a current ratio of 1.50 and a debt-to-equity ratio of 2.55. Discover Financial Services has a 12-month low of $57.50 and a 12-month high of $81.93.
The company also recently announced a quarterly dividend, which will be paid on Thursday, June 7th. Investors of record on Thursday, May 24th will be paid a dividend of $0.35 per share. The ex-dividend date is Wednesday, May 23rd. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.82%. Discover Financial Services’s payout ratio is currently 23.41%.
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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