Brokers Set Expectations for Discover Financial Services’ Q3 2024 Earnings (NYSE:DFS)

Discover Financial Services (NYSE:DFS) – Keefe, Bruyette & Woods lifted their Q3 2024 earnings per share (EPS) estimates for Discover Financial Services in a research report issued on Monday, July 8th. Keefe, Bruyette & Woods analyst S. Sakhrani now expects that the financial services provider will post earnings per share of $3.46 for the quarter, up from their prior forecast of $3.44. Keefe, Bruyette & Woods currently has a “Outperform” rating and a $160.00 target price on the stock. The consensus estimate for Discover Financial Services’ current full-year earnings is $11.47 per share. Keefe, Bruyette & Woods also issued estimates for Discover Financial Services’ Q4 2024 earnings at $2.53 EPS, Q3 2025 earnings at $3.44 EPS and Q4 2025 earnings at $2.86 EPS.

A number of other equities analysts have also weighed in on DFS. Wells Fargo & Company increased their target price on Discover Financial Services from $105.00 to $135.00 and gave the stock an “equal weight” rating in a research note on Wednesday, April 10th. Barclays increased their target price on Discover Financial Services from $123.00 to $135.00 and gave the stock an “equal weight” rating in a research note on Tuesday. StockNews.com started coverage on Discover Financial Services in a research note on Sunday, July 7th. They set a “hold” rating on the stock. Jefferies Financial Group increased their target price on Discover Financial Services from $145.00 to $150.00 and gave the stock a “buy” rating in a research note on Tuesday. Finally, JPMorgan Chase & Co. increased their target price on Discover Financial Services from $120.00 to $132.00 and gave the stock a “neutral” rating in a research note on Monday. Thirteen investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $129.78.

Discover Financial Services Stock Performance

DFS opened at $131.48 on Wednesday. Discover Financial Services has a 12-month low of $79.04 and a 12-month high of $133.78. The stock has a market cap of $32.97 billion, a price-to-earnings ratio of 14.99, a PEG ratio of 0.78 and a beta of 1.44. The business has a 50 day moving average of $125.57 and a 200-day moving average of $120.13. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 1.50.

Discover Financial Services (NYSE:DFS) last released its quarterly earnings data on Thursday, April 18th. The financial services provider reported $1.10 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 analyst estimates of $4.07 billion. During the same period in the previous year, the business earned $3.58 earnings per share.

Hedge Funds Weigh In On Discover Financial Services

Hedge funds and other institutional investors have recently modified their holdings of the business. Partnership Wealth Management LLC bought a new position in shares of Discover Financial Services in the 4th quarter valued at $25,000. Bruce G. Allen Investments LLC acquired a new stake in shares of Discover Financial Services during the 4th quarter valued at $28,000. MeadowBrook Investment Advisors LLC acquired a new stake in shares of Discover Financial Services during the 4th quarter valued at $31,000. Riverview Trust Co acquired a new stake in shares of Discover Financial Services during the 1st quarter valued at $34,000. Finally, New Covenant Trust Company N.A. acquired a new stake in shares of Discover Financial Services during the 1st quarter valued at $34,000. Institutional investors own 86.94% of the company’s stock.

Discover Financial Services Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, June 6th. Stockholders of record on Thursday, May 23rd were paid a $0.70 dividend. The ex-dividend date was Wednesday, May 22nd. This represents a $2.80 annualized dividend and a dividend yield of 2.13%. Discover Financial Services’s payout ratio is 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.