William Blair Comments on Discover Financial Services’ Q3 2022 Earnings (NYSE:DFS)

Discover Financial Services (NYSE:DFSGet Rating) – Equities researchers at William Blair upped their Q3 2022 earnings per share estimates for Discover Financial Services in a report released on Thursday, July 21st. William Blair analyst R. Napoli now forecasts that the financial services provider will post earnings of $3.47 per share for the quarter, up from their previous estimate of $3.39. The consensus estimate for Discover Financial Services’ current full-year earnings is $14.93 per share. William Blair also issued estimates for Discover Financial Services’ FY2022 earnings at $15.55 EPS, Q4 2023 earnings at $3.99 EPS, Q1 2024 earnings at $3.74 EPS and Q2 2024 earnings at $4.00 EPS.

Discover Financial Services (NYSE:DFSGet Rating) last issued its quarterly earnings data on Wednesday, July 20th. The financial services provider reported $3.96 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.77 by $0.19. The business had revenue of $3.22 billion during the quarter, compared to the consensus estimate of $3.18 billion. Discover Financial Services had a return on equity of 35.59% and a net margin of 34.89%. The business’s revenue was down 9.9% on a year-over-year basis. During the same period in the previous year, the firm posted $5.55 earnings per share.

Other equities research analysts also recently issued reports about the company. Barclays cut their target price on Discover Financial Services from $140.00 to $133.00 and set an “overweight” rating for the company in a research report on Friday. Bank of America cut their target price on Discover Financial Services from $128.00 to $120.00 in a research report on Sunday. Wolfe Research downgraded Discover Financial Services from an “outperform” rating to a “peer perform” rating and set a $97.00 target price for the company. in a research report on Thursday, May 12th. StockNews.com initiated coverage on Discover Financial Services in a research report on Thursday, March 31st. They issued a “hold” rating for the company. Finally, Wells Fargo & Company dropped their price target on Discover Financial Services from $130.00 to $103.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 13th. Seven research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat, Discover Financial Services has a consensus rating of “Moderate Buy” and an average price target of $127.56.

Discover Financial Services Stock Performance

DFS opened at $100.00 on Monday. The company has a market capitalization of $28.10 billion, a price-to-earnings ratio of 6.51, a price-to-earnings-growth ratio of 0.23 and a beta of 1.48. The company has a debt-to-equity ratio of 1.38, a current ratio of 1.09 and a quick ratio of 1.26. Discover Financial Services has a 1-year low of $88.02 and a 1-year high of $135.69. The business has a 50 day moving average price of $102.15 and a two-hundred day moving average price of $110.83.

Discover Financial Services Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 8th. Shareholders of record on Thursday, August 25th will be paid a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a yield of 2.40%. The ex-dividend date is Wednesday, August 24th. Discover Financial Services’s dividend payout ratio (DPR) is currently 15.63%.

Institutional Trading of Discover Financial Services

Several large investors have recently added to or reduced their stakes in DFS. Norges Bank purchased a new position in shares of Discover Financial Services during the 4th quarter valued at $354,824,000. Allspring Global Investments Holdings LLC purchased a new position in shares of Discover Financial Services during the 4th quarter valued at $225,394,000. First Trust Advisors LP grew its holdings in shares of Discover Financial Services by 489.5% during the 1st quarter. First Trust Advisors LP now owns 1,999,341 shares of the financial services provider’s stock valued at $220,307,000 after acquiring an additional 1,660,180 shares in the last quarter. Invesco Ltd. grew its holdings in shares of Discover Financial Services by 43.8% during the 4th quarter. Invesco Ltd. now owns 2,099,589 shares of the financial services provider’s stock valued at $242,629,000 after acquiring an additional 639,624 shares in the last quarter. Finally, Boston Partners grew its holdings in shares of Discover Financial Services by 13.0% during the 4th quarter. Boston Partners now owns 4,347,646 shares of the financial services provider’s stock valued at $502,490,000 after acquiring an additional 501,073 shares in the last quarter. 85.53% of the stock is owned by institutional investors and hedge funds.

About Discover Financial Services

(Get Rating)

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.

Further Reading

Earnings History and Estimates for Discover Financial Services (NYSE:DFS)

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