Wall Street brokerages expect that Discover Financial Services (NYSE:DFS) will report $2.80 billion in sales for the current quarter, Zacks reports. Five analysts have issued estimates for Discover Financial Services’ earnings. The lowest sales estimate is $2.79 billion and the highest is $2.83 billion. Discover Financial Services reported sales of $2.60 billion in the same quarter last year, which indicates a positive year over year growth rate of 7.7%. The business is expected to report its next earnings report on Thursday, July 25th.
According to Zacks, analysts expect that Discover Financial Services will report full year sales of $11.43 billion for the current year, with estimates ranging from $11.37 billion to $11.49 billion. For the next financial year, analysts forecast that the business will post sales of $12.08 billion, with estimates ranging from $11.86 billion to $12.23 billion. Zacks’ sales averages are an average based on a survey of analysts that follow Discover Financial Services.
Discover Financial Services (NYSE:DFS) last released its quarterly earnings data on Thursday, April 25th. The financial services provider reported $2.15 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.02 by $0.13. Discover Financial Services had a net margin of 20.98% and a return on equity of 26.34%. The company had revenue of $2.76 billion during the quarter, compared to analyst estimates of $2.76 billion. During the same quarter in the prior year, the business earned $1.82 earnings per share. The business’s quarterly revenue was up 7.3% compared to the same quarter last year.
Several equities research analysts have recently issued reports on DFS shares. Royal Bank of Canada started coverage on shares of Discover Financial Services in a research report on Friday, May 3rd. They issued an “outperform” rating and a $96.00 price objective for the company. Oppenheimer lowered shares of Discover Financial Services from an “outperform” rating to a “market perform” rating in a research report on Tuesday, May 7th. BMO Capital Markets increased their price objective on shares of Discover Financial Services to $92.00 and gave the stock a “market perform” rating in a research report on Monday, April 29th. JMP Securities increased their price objective on shares of Discover Financial Services from $74.00 to $80.00 and gave the stock a “market outperform” rating in a research report on Thursday, April 4th. Finally, Nomura increased their price objective on shares of Discover Financial Services from $81.00 to $86.00 and gave the stock a “buy” rating in a research report on Friday, April 26th. Nine analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. The stock currently has an average rating of “Buy” and an average price target of $80.38.
In other Discover Financial Services news, SVP Edward W. Mcgrogan sold 2,450 shares of the stock in a transaction on Monday, April 29th. The shares were sold at an average price of $81.60, for a total transaction of $199,920.00. Following the transaction, the senior vice president now directly owns 13,166 shares in the company, valued at approximately $1,074,345.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO R. Mark Graf sold 30,741 shares of the stock in a transaction on Monday, April 29th. The shares were sold at an average price of $81.92, for a total transaction of $2,518,302.72. Following the transaction, the chief financial officer now owns 56,072 shares in the company, valued at $4,593,418.24. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 52,119 shares of company stock valued at $4,222,655. Company insiders own 0.81% of the company’s stock.
A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Altfest L J & Co. Inc. bought a new position in Discover Financial Services during the 1st quarter valued at $429,000. Marshall Wace North America L.P. bought a new position in Discover Financial Services during the 1st quarter valued at $4,711,000. Marshall Wace LLP boosted its stake in Discover Financial Services by 575.2% during the 1st quarter. Marshall Wace LLP now owns 101,278 shares of the financial services provider’s stock valued at $7,207,000 after acquiring an additional 86,278 shares during the last quarter. M Holdings Securities Inc. bought a new position in Discover Financial Services during the 1st quarter valued at $223,000. Finally, Redwood Investment Management LLC bought a new position in shares of Discover Financial Services in the 1st quarter worth about $2,734,000. Hedge funds and other institutional investors own 84.94% of the company’s stock.
Shares of Discover Financial Services stock remained flat at $$77.45 during trading hours on Monday. 1,937,796 shares of the stock traded hands, compared to its average volume of 1,537,058. Discover Financial Services has a 52 week low of $54.36 and a 52 week high of $82.51. The firm has a market capitalization of $25.07 billion, a price-to-earnings ratio of 9.94, a P/E/G ratio of 1.17 and a beta of 1.60. The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 2.46.
The company also recently declared a quarterly dividend, which was paid on Thursday, June 6th. Investors of record on Friday, May 24th were issued a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 2.07%. The ex-dividend date was Thursday, May 23rd. Discover Financial Services’s payout ratio is 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.
Further Reading: P/E Growth (PEG)
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