Brokers Set Expectations for Discover Financial Services’ Q2 2024 Earnings (NYSE:DFS)

Discover Financial Services (NYSE:DFS) – Analysts at Zacks Research raised their Q2 2024 earnings per share (EPS) estimates for shares of Discover Financial Services in a research report issued on Wednesday, May 1st. Zacks Research analyst D. Chatterjee now forecasts that the financial services provider will earn $3.04 per share for the quarter, up from their prior estimate of $2.65. The consensus estimate for Discover Financial Services’ current full-year earnings is $11.86 per share. Zacks Research also issued estimates for Discover Financial Services’ Q3 2024 earnings at $3.22 EPS, Q4 2024 earnings at $2.64 EPS, Q1 2025 earnings at $2.78 EPS, Q2 2025 earnings at $3.49 EPS, Q3 2025 earnings at $2.82 EPS, FY2025 earnings at $11.96 EPS, Q1 2026 earnings at $3.41 EPS and FY2026 earnings at $12.48 EPS.

Discover Financial Services (NYSE:DFS) last posted its quarterly earnings results on Thursday, April 18th. The financial services provider reported $1.10 EPS for the quarter, missing the consensus estimate of $2.98 by ($1.88). Discover Financial Services had a net margin of 10.56% and a return on equity of 17.07%. The business had revenue of $4.21 billion during the quarter, compared to analysts’ expectations of $4.07 billion. During the same quarter last year, the firm earned $3.58 EPS.

A number of other research firms have also recently weighed in on DFS. Barclays upped their price target on Discover Financial Services from $120.00 to $123.00 and gave the stock an “equal weight” rating in a report on Friday, April 19th. BMO Capital Markets cut their price objective on shares of Discover Financial Services from $116.00 to $104.00 and set a “market perform” rating on the stock in a report on Monday, January 22nd. Evercore ISI raised their target price on Discover Financial Services from $117.00 to $140.00 and gave the company an “in-line” rating in a research note on Thursday, February 22nd. StockNews.com started coverage on Discover Financial Services in a research note on Saturday. They issued a “hold” rating on the stock. Finally, Royal Bank of Canada restated a “sector perform” rating and set a $140.00 price objective (up from $117.00) on shares of Discover Financial Services in a report on Wednesday, February 21st. Twelve research analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $126.29.

Discover Financial Services Price Performance

DFS opened at $123.61 on Monday. The company has a 50 day moving average of $124.50 and a two-hundred day moving average of $109.29. Discover Financial Services has a 52-week low of $79.04 and a 52-week high of $131.65. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 1.50. The company has a market cap of $30.98 billion, a P/E ratio of 14.09, a P/E/G ratio of 0.72 and a beta of 1.43.

Discover Financial Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 6th. Stockholders of record on Thursday, May 23rd will be paid a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.27%. The ex-dividend date is Wednesday, May 22nd. Discover Financial Services’s dividend payout ratio is 31.93%.

Institutional Investors Weigh In On Discover Financial Services

A number of institutional investors have recently added to or reduced their stakes in DFS. Partnership Wealth Management LLC acquired a new position in Discover Financial Services in the fourth quarter valued at about $25,000. Bruce G. Allen Investments LLC acquired a new position in Discover Financial Services during the 4th quarter worth $28,000. Riverview Trust Co acquired a new stake in shares of Discover Financial Services in the 1st quarter valued at $34,000. MeadowBrook Investment Advisors LLC acquired a new stake in shares of Discover Financial Services in the 4th quarter valued at $31,000. Finally, Turtle Creek Wealth Advisors LLC bought a new stake in shares of Discover Financial Services during the fourth quarter worth $35,000. 86.94% of the stock is owned by institutional investors and hedge funds.

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.