Oppenheimer Comments on Discover Financial Services’ Q1 2023 Earnings (NYSE:DFS)

Discover Financial Services (NYSE:DFS – Get Rating) – Research analysts at Oppenheimer lowered their Q1 2023 earnings per share estimates for Discover Financial Services in a research note issued to investors on Wednesday, January 18th. Oppenheimer analyst D. Gabriele now expects that the financial services provider will post earnings per share of $4.34 for the quarter, down from their previous estimate of $4.47. The consensus estimate for Discover Financial Services’ current full-year earnings is $15.34 per share. Oppenheimer also issued estimates for Discover Financial Services’ FY2024 earnings at $12.27 EPS.

Discover Financial Services (NYSE:DFS – Get Rating) last announced its quarterly earnings data on Thursday, January 19th. The financial services provider reported $3.77 EPS for the quarter, beating analysts’ consensus estimates of $3.66 by $0.11. The business had revenue of $3.73 billion during the quarter, compared to the consensus estimate of $3.68 billion. Discover Financial Services had a return on equity of 34.94% and a net margin of 31.90%. The business’s revenue for the quarter was up 27.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.64 earnings per share.

A number of other brokerages also recently commented on DFS. UBS Group assumed coverage on Discover Financial Services in a research report on Monday, November 21st. They issued a “neutral” rating and a $120.00 price objective for the company. StockNews.com started coverage on Discover Financial Services in a research report on Wednesday, October 12th. They set a “hold” rating for the company. Bank of America downgraded Discover Financial Services from a “buy” rating to an “underperform” rating in a research report on Tuesday, December 13th. Wells Fargo & Company boosted their price target on Discover Financial Services from $103.00 to $115.00 and gave the company an “equal weight” rating in a research report on Thursday, December 15th. Finally, Morgan Stanley lowered their price target on Discover Financial Services from $116.00 to $115.00 and set an “overweight” rating for the company in a research report on Thursday, December 1st. One research analyst has rated the stock with a sell rating, nine have issued a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $118.33.

Discover Financial Services Price Performance

Shares of NYSE:DFS opened at $106.14 on Friday. The company has a market cap of $29.00 billion, a P/E ratio of 6.91, a P/E/G ratio of 1.89 and a beta of 1.41. The company has a quick ratio of 1.26, a current ratio of 1.25 and a debt-to-equity ratio of 1.53. Discover Financial Services has a 52 week low of $87.64 and a 52 week high of $129.12. The business has a fifty day simple moving average of $103.13 and a 200-day simple moving average of $101.22.

Institutional Trading of Discover Financial Services

Several institutional investors and hedge funds have recently bought and sold shares of the company. HB Wealth Management LLC raised its stake in Discover Financial Services by 32.3% during the fourth quarter. HB Wealth Management LLC now owns 4,518 shares of the financial services provider’s stock valued at $442,000 after buying an additional 1,103 shares in the last quarter. V Wealth Advisors LLC bought a new position in Discover Financial Services in the 4th quarter worth approximately $203,000. Crossmark Global Holdings Inc. lifted its position in Discover Financial Services by 1.2% in the fourth quarter. Crossmark Global Holdings Inc. now owns 52,436 shares of the financial services provider’s stock worth $5,129,000 after purchasing an additional 608 shares during the period. Tsfg LLC lifted its position in Discover Financial Services by 151.2% in the fourth quarter. Tsfg LLC now owns 309 shares of the financial services provider’s stock worth $30,000 after purchasing an additional 186 shares during the period. Finally, Pendal Group Ltd lifted its position in Discover Financial Services by 10.1% in the fourth quarter. Pendal Group Ltd now owns 7,028 shares of the financial services provider’s stock worth $688,000 after purchasing an additional 646 shares during the period. Institutional investors and hedge funds own 81.74% of the company’s stock.

Insider Buying and Selling

In related news, Director Michael H. Moskow sold 1,291 shares of the business’s stock in a transaction dated Wednesday, December 7th. The stock was sold at an average price of $105.10, for a total value of $135,684.10. Following the transaction, the director now owns 51,596 shares in the company, valued at $5,422,739.60. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders own 0.59% of the company’s stock.

Discover Financial Services Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, March 9th. Investors of record on Thursday, February 23rd will be paid a $0.60 dividend. This represents a $2.40 annualized dividend and a dividend yield of 2.26%. The ex-dividend date is Wednesday, February 22nd. Discover Financial Services’s dividend payout ratio (DPR) is 15.63%.

Discover Financial Services Company Profile

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Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; private student loans, personal loans, home loans, and other consumer lending; and direct-to-consumer deposit products comprising savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts and checking accounts, and sweep accounts.