Zacks Research Analysts Boost Earnings Estimates for Discover Financial Services (NYSE:DFS)

Discover Financial Services (NYSE:DFS) – Stock analysts at Zacks Research increased their FY2023 earnings estimates for Discover Financial Services in a research report issued to clients and investors on Wednesday, September 13th. Zacks Research analyst D. Chatterjee now anticipates that the financial services provider will post earnings per share of $12.58 for the year, up from their previous estimate of $12.55. The consensus estimate for Discover Financial Services’ current full-year earnings is $12.95 per share. Zacks Research also issued estimates for Discover Financial Services’ Q4 2023 earnings at $2.55 EPS, Q1 2024 earnings at $2.98 EPS, Q3 2024 earnings at $3.17 EPS, FY2024 earnings at $11.88 EPS and Q2 2025 earnings at $3.22 EPS.

Discover Financial Services (NYSE:DFS) last released its quarterly earnings results on Thursday, July 20th. The financial services provider reported $3.54 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.70 by ($0.16). Discover Financial Services had a net margin of 21.51% and a return on equity of 29.65%. The business had revenue of $3.88 billion for the quarter, compared to the consensus estimate of $3.88 billion. During the same period in the previous year, the business posted $3.96 EPS. Discover Financial Services’s revenue was up 20.7% on a year-over-year basis.

DFS has been the subject of a number of other research reports. Stephens reissued an “equal weight” rating and set a $116.00 target price on shares of Discover Financial Services in a research note on Tuesday, August 15th. Bank of America raised their price target on shares of Discover Financial Services from $114.00 to $119.00 in a report on Thursday, June 15th. Citigroup reduced their price target on shares of Discover Financial Services from $119.00 to $108.00 and set a “neutral” rating for the company in a report on Friday, July 21st. Morgan Stanley reduced their price target on shares of Discover Financial Services from $107.00 to $100.00 and set an “equal weight” rating for the company in a report on Friday, August 18th. Finally, StockNews.com initiated coverage on shares of Discover Financial Services in a report on Thursday, August 17th. They issued a “hold” rating for the company. Eleven analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $113.13.

Discover Financial Services Price Performance

Shares of NYSE DFS opened at $90.08 on Friday. Discover Financial Services has a twelve month low of $87.45 and a twelve month high of $122.50. The firm has a fifty day simple moving average of $100.72 and a 200 day simple moving average of $103.21. The company has a market capitalization of $22.52 billion, a PE ratio of 6.24, a P/E/G ratio of 1.24 and a beta of 1.44. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 1.58.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Adirondack Retirement Specialists Inc. purchased a new position in Discover Financial Services during the first quarter worth about $26,000. Sandy Spring Bank raised its position in Discover Financial Services by 133.3% in the fourth quarter. Sandy Spring Bank now owns 273 shares of the financial services provider’s stock worth $27,000 after acquiring an additional 156 shares during the period. Resurgent Financial Advisors LLC bought a new stake in Discover Financial Services in the fourth quarter worth about $31,000. Horizon Bancorp Inc. IN raised its position in Discover Financial Services by 76.1% in the first quarter. Horizon Bancorp Inc. IN now owns 347 shares of the financial services provider’s stock worth $34,000 after acquiring an additional 150 shares during the period. Finally, Compass Wealth Management LLC bought a new stake in Discover Financial Services in the fourth quarter worth about $34,000. 83.63% of the stock is currently owned by hedge funds and other institutional investors.

Discover Financial Services Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, September 7th. Investors of record on Thursday, August 24th were issued a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 3.11%. The ex-dividend date of this dividend was Wednesday, August 23rd. Discover Financial Services’s dividend payout ratio (DPR) is presently 19.40%.

Discover Financial Services Company Profile

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.