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

Discover Financial Services (NYSE:DFS - Free Report) - Equities researchers at Zacks Research lowered their FY2024 earnings per share estimates for shares of Discover Financial Services in a research report issued on Wednesday, May 1st. Zacks Research analyst D. Chatterjee now anticipates that the financial services provider will post earnings per share of $10.00 for the year, down from their prior estimate of $10.09. The consensus estimate for Discover Financial Services' current full-year earnings is $11.48 per share. Zacks Research also issued estimates for Discover Financial Services' Q4 2025 earnings at $2.87 EPS.

Discover Financial Services (NYSE:DFS - Get Free Report) last posted its quarterly earnings results on Thursday, April 18th. The financial services provider reported $1.10 earnings per share for the quarter, missing analysts' consensus estimates of $2.98 by ($1.88). Discover Financial Services had a return on equity of 16.74% and a net margin of 10.56%. The business had revenue of $4.21 billion for the quarter, compared to analyst estimates of $4.07 billion. During the same quarter in the prior year, the firm earned $3.58 EPS.

Other equities research analysts have also issued reports about the company. Wolfe Research reiterated a "peer perform" rating on shares of Discover Financial Services in a research note on Wednesday, February 21st. StockNews.com initiated coverage on Discover Financial Services in a research note on Friday, April 26th. They set a "hold" rating for the company. Citigroup lifted their price objective on Discover Financial Services from $127.00 to $168.00 and gave the company a "buy" rating in a report on Friday, February 23rd. The Goldman Sachs Group lowered their target price on shares of Discover Financial Services from $139.00 to $121.00 and set a "buy" rating on the stock in a report on Friday, January 19th. Finally, Jefferies Financial Group increased their target price on shares of Discover Financial Services from $137.00 to $145.00 and gave the stock a "buy" rating in a research report on Friday, April 19th. Twelve research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $126.29.

Discover Financial Services Price Performance

NYSE DFS traded up $0.55 on Friday, reaching $125.06. The company's stock had a trading volume of 811,001 shares, compared to its average volume of 2,149,604. Discover Financial Services has a 52 week low of $79.04 and a 52 week high of $131.65. The company has a current ratio of 1.05, a quick ratio of 1.13 and a debt-to-equity ratio of 1.49. The firm has a market cap of $31.34 billion, a PE ratio of 14.26, a price-to-earnings-growth ratio of 0.74 and a beta of 1.43. The business has a 50-day moving average price of $124.34 and a 200 day moving average price of $108.25.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Fjarde AP Fonden Fourth Swedish National Pension Fund grew its stake in shares of Discover Financial Services by 2.7% during the third quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 50,178 shares of the financial services provider's stock worth $4,347,000 after purchasing an additional 1,300 shares during the period. Xponance Inc. increased its stake in shares of Discover Financial Services by 2.7% in the 3rd quarter. Xponance Inc. now owns 31,876 shares of the financial services provider's stock valued at $2,761,000 after acquiring an additional 850 shares during the last quarter. Dakota Wealth Management acquired a new stake in shares of Discover Financial Services in the 3rd quarter valued at approximately $290,000. Raymond James & Associates boosted its stake in Discover Financial Services by 9.0% during the 3rd quarter. Raymond James & Associates now owns 267,265 shares of the financial services provider's stock worth $23,153,000 after acquiring an additional 22,022 shares during the last quarter. Finally, Raymond James Financial Services Advisors Inc. grew its holdings in Discover Financial Services by 10.1% during the third quarter. Raymond James Financial Services Advisors Inc. now owns 159,752 shares of the financial services provider's stock valued at $13,839,000 after purchasing an additional 14,708 shares during the period. 86.94% of the stock is currently owned by institutional investors and hedge funds.

Discover Financial Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 6th. Shareholders of record on Thursday, May 23rd will be issued a dividend of $0.70 per share. The ex-dividend date is Wednesday, May 22nd. This represents a $2.80 annualized dividend and a yield of 2.24%. Discover Financial Services's dividend payout ratio is currently 31.93%.

About Discover Financial Services

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.