$1.87 Billion in Sales Expected for Discover Financial Services (DFS) This Quarter
Brokerages expect Discover Financial Services (NYSE:DFS) to report sales of $1.87 billion for the current fiscal quarter, Zacks reports. Four analysts have made estimates for Discover Financial Services’ earnings, with estimates ranging from $1.80 billion to $1.96 billion. Discover Financial Services posted sales of $2.30 billion during the same quarter last year, which indicates a negative year-over-year growth rate of 18.7%. The business is expected to issue its next earnings results on Tuesday, October 24th.
According to Zacks, analysts expect that Discover Financial Services will report full year sales of $1.87 billion for the current year, with estimates ranging from $7.20 billion to $7.40 billion. For the next financial year, analysts expect that the company will post sales of $7.58 billion per share, with estimates ranging from $7.33 billion to $7.91 billion. Zacks Investment Research’s sales averages are an average based on a survey of sell-side research analysts that cover Discover Financial Services.
Discover Financial Services (NYSE:DFS) last released its earnings results on Wednesday, July 26th. The financial services provider reported $1.40 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $1.45 by ($0.05). Discover Financial Services had a return on equity of 21.28% and a net margin of 20.91%. The company had revenue of $2.42 billion for the quarter, compared to analyst estimates of $2.40 billion. During the same period in the previous year, the firm earned $1.47 earnings per share. The company’s revenue for the quarter was up 9.2% compared to the same quarter last year.
A number of brokerages have commented on DFS. Buckingham Research began coverage on Discover Financial Services in a research note on Monday. They set a “buy” rating and a $74.00 price objective on the stock. Barclays PLC reaffirmed an “equal weight” rating and issued a $70.00 target price (down previously from $79.00) on shares of Discover Financial Services in a research report on Thursday, July 13th. ValuEngine upgraded Discover Financial Services from a “hold” rating to a “buy” rating in a research note on Tuesday, September 26th. Oppenheimer Holdings, Inc. set a $69.00 target price on Discover Financial Services and gave the company a “buy” rating in a research note on Wednesday, July 26th. Finally, Zacks Investment Research downgraded Discover Financial Services from a “hold” rating to a “sell” rating in a report on Tuesday, September 26th. Three analysts have rated the stock with a sell rating, seven have given a hold rating and seventeen have issued a buy rating to the stock. Discover Financial Services has a consensus rating of “Buy” and a consensus price target of $73.95.
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Shares of Discover Financial Services (NYSE DFS) opened at 65.16 on Tuesday. The firm has a market cap of $24.26 billion, a price-to-earnings ratio of 11.24 and a beta of 1.47. Discover Financial Services has a 52-week low of $53.91 and a 52-week high of $74.33. The firm has a 50-day moving average price of $60.23 and a 200-day moving average price of $61.86.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 7th. Shareholders of record on Thursday, August 24th were issued a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.15%. This is a boost from Discover Financial Services’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend was Tuesday, August 22nd. Discover Financial Services’s dividend payout ratio is 24.18%.
Discover Financial Services announced that its Board of Directors has initiated a stock repurchase program on Wednesday, June 28th that authorizes the company to repurchase $2.23 billion in outstanding shares. This repurchase authorization authorizes the financial services provider to reacquire up to 9.5% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s management believes its stock is undervalued.
In other Discover Financial Services news, EVP Carlos Minetti sold 8,000 shares of Discover Financial Services stock in a transaction on Tuesday, August 1st. The stock was sold at an average price of $61.29, for a total transaction of $490,320.00. Following the sale, the executive vice president now owns 197,149 shares of the company’s stock, valued at approximately $12,083,262.21. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO David W. Nelms sold 30,000 shares of Discover Financial Services stock in a transaction on Tuesday, August 1st. The shares were sold at an average price of $61.13, for a total value of $1,833,900.00. Following the sale, the chief executive officer now directly owns 1,559,912 shares in the company, valued at approximately $95,357,420.56. The disclosure for this sale can be found here. In the last three months, insiders sold 103,744 shares of company stock worth $6,252,057. Company insiders own 0.96% of the company’s stock.
Large investors have recently added to or reduced their stakes in the company. V Wealth Management LLC acquired a new position in shares of Discover Financial Services during the second quarter valued at $101,000. FNY Managed Accounts LLC acquired a new stake in Discover Financial Services in the first quarter worth about $124,000. Orrstown Financial Services Inc. lifted its holdings in Discover Financial Services by 16.7% in the second quarter. Orrstown Financial Services Inc. now owns 2,002 shares of the financial services provider’s stock worth $125,000 after purchasing an additional 286 shares during the period. Perigon Wealth Management LLC lifted its holdings in Discover Financial Services by 2.3% in the first quarter. Perigon Wealth Management LLC now owns 2,146 shares of the financial services provider’s stock worth $147,000 after purchasing an additional 48 shares during the period. Finally, Capstone Investment Advisors Netherlands B.V. acquired a new stake in Discover Financial Services in the second quarter worth about $157,000. 85.45% of the stock is owned by institutional investors.
Discover Financial Services Company Profile
Discover Financial Services (DFS) is a direct banking and payment services company. The Company is a bank holding company, as well as a financial holding company. The Company operates through two segments: Direct Banking and Payment Services. It provides direct banking products and services, and payment services through its subsidiaries.
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