Discover Financial Services (DFS) is poised to surpass fourth-quarter 2023 earnings expectations. The results, to be announced on Jan 17, after the closing bell, are anticipated to reflect sustained growth in net interest income and Payment Services revenues, contributing to its performance.What Do the Estimates Say?The Zacks Consensus Estimate for fourth-quarter earnings per share of $2.50 suggests a 33.2% decrease from the prior-year figure of $3.74. The consensus mark has witnessed two upward estimate re ...

Wall Street analysts expect Discover (DFS) to post quarterly earnings of $2.50 per share in its upcoming report, which indicates a year-over-year decline of 33.7%. Revenues are expected to be $4.09 billion, up 9.7% from the year-ago quarter.Over the last 30 days, there has been an upward revision of 2.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Bef ...

Discover Financial Services (DFS) has been benefiting on the back of a growing loan portfolio resulting in higher net interest income. Strong growth in PULSE volume, collaborations and sound cash reserves also act as tailwinds for the stock. Zacks Rank & Price PerformanceDiscover Financial carries a Zacks Rank #3 (Hold) at present.The stock has gained 28.1% in the past three months compared with the industry’s 31.5% growth. The Finance sector rallied 15.2%, while the S&P 500 Composite Index increased 11.1% ...

RIVERWOODS, Ill.--(BUSINESS WIRE)--Discover Financial Services (NYSE: DFS) plans to report its Fourth quarter 2023 results after the market closes on Wednesday, January 17, 2024. The earnings release will be available through Discover's Investor Relations website at https://investorrelations.discover.com. A conference call to discuss the firm's results, outlook and related matters will be held on Thursday, January 18, 2024, at 7:00 a.m. Central Time. The live audio webcast will be accessible to the general ...

Financial Performance - Net income for the quarter was $683 million, or $2.59 per diluted share, down from $1.0 billion, or $3.56 per diluted share, in the prior year[217]. - Digital Banking segment reported pretax income of $803 million for Q3 2023, down from $1.3 billion in Q3 2022, and $3.1 billion for the nine months ended September 30, 2023, compared to $4.4 billion in the same period last year[241]. - Net income for the three months ended September 30, 2023, decreased by $330 million (33%) to $683 million, down from $1,013 million in 2022[256]. - The return on average assets decreased to 1.88% for the nine months ended September 30, 2023, down from 3.00% in 2022[265]. Loan Growth - Total loans increased by $17.8 billion, or 17%, reaching $122.7 billion[217]. - Credit card loans grew by $13.8 billion, or 16%, totaling $97.4 billion[217]. - The company expects continued loan growth driven by moderation in the payment rate and recent account growth[217]. - Total loan receivables increased to $120,380 million with a yield of 14.44% for the three months ended September 30, 2023, compared to $102,035 million and 12.67% in 2022[261]. - Total loan receivables rose to $122.676 billion in September 2023, compared to $112.120 billion in September 2022, marking an increase of 9.4%[271]. Credit Quality - The net charge-off rate for credit card loans rose by 211 basis points to 4.03%, while the delinquency rate over 30 days past due increased by 130 basis points to 3.41%[217]. - Provision for credit losses rose to $1.70 billion in Q3 2023, compared to $773 million in Q3 2022, and $4.11 billion for the nine months, up from $1.48 billion in the same period last year[239]. - The allowance for credit losses was $8.7 billion as of September 30, 2023, reflecting a $601 million increase from June 30, 2023[250]. - Net charge-offs for credit card loans were $2.5 billion for the nine months ended September 30, 2023, with a net charge-off rate of 3.62%, up from 1.93% in the same period of 2022[282]. - Delinquencies for credit card loans increased to $3.3 billion (3.41%) as of September 30, 2023, compared to $2.3 billion (2.53%) at December 31, 2022[284]. Interest Income and Expenses - Total interest income for Digital Banking increased to $4.61 billion in Q3 2023, up 37.3% from $3.36 billion in Q3 2022, and $12.98 billion for the nine months, a 44.1% increase from $9.01 billion in the same period last year[239]. - Interest income for the three months ended September 30, 2023, increased by $1,253 million (37%) to $4,610 million compared to $3,357 million in 2022[256]. - Interest expense for the three months ended September 30, 2023, surged by $774 million (151%) to $1,288 million, compared to $514 million in 2022[256]. - Net interest income for the three months ended September 30, 2023, rose by $479 million (17%) to $3,322 million, up from $2,843 million in 2022[256]. Expenses and Investments - Total expenses are anticipated to rise due to investments in acquisition, compliance, risk management, technology, and analytics[217]. - The company plans to manage expenses while investing in profitable long-term growth[217]. - Total other expense for Digital Banking increased to $1.41 billion in Q3 2023, up from $1.33 billion in Q3 2022, primarily due to higher professional fees and employee compensation[244]. - Employee compensation and benefits increased by 4% to $575 million for the three months ended September 30, 2023, compared to $551 million in the same period of 2022[289]. Liquidity and Capital Management - As of September 30, 2023, the company had $81.2 billion in direct-to-consumer deposits and $22.8 billion in brokered deposits[293]. - The liquidity portfolio and undrawn credit facilities totaled $75.5 billion, an increase of $8.3 billion from December 31, 2022[321]. - The Common Equity Tier 1 (CET1) capital ratio was impacted by the phase-in of the CECL accounting model, decreasing CET1 by $1.1 billion as of January 1, 2023[328]. - At September 30, 2023, total common stockholders' equity was $13.2 billion, with tangible common equity at $12.9 billion after excluding goodwill[334]. Regulatory and Compliance Issues - Moody's changed the outlook on Discover Financial Services' senior unsecured debt from "stable" to "negative" following compliance issues[312]. - The company has paused share repurchases pending an internal review of compliance and risk management[338]. - Regulatory reforms may impact the company's ability to pay dividends and repurchase shares in the future[338]. Market Outlook - The macroeconomic forecast projects an unemployment rate of 3.8% at the end of 2023, peaking at 4.2% in Q4 2024, and a 2.02% growth rate in real GDP for 2023[277]. - As of September 30, 2023, a hypothetical 100 basis point increase in interest rates would result in an estimated increase of $116 million (0.86%) in net interest income[348]. - Conversely, a hypothetical 100 basis point decrease in interest rates would lead to an estimated decrease of $113 million (0.83%) in net interest income[348].

Discover Financial Services (NYSE:DFS) Q3 2023 Earnings Conference Call October 19, 2023 8:00 AM ET Company Participants Eric Wasserstrom - Head of Investor Relations John Owen - Interim Chief Executive Officer John Greene - Chief Financial Officer Conference Call Participants Sanjay Sakhrani - KBW Bill Carcache - Wolfe Research Ryan Nash - Goldman Sachs John Hecht - Jefferies Jeff Adelson - Morgan Stanley Rick Shane - JPMorgan Mihir Bhatia - Bank of America Merrill Lynch Bob Napoli - William Blair Kevin Ba ...

Exhibit 99.3 3Q23 Financial Results October 18, 2023 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-33378 DISCOVER FINANCIAL SERVICES (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of in ...

Discover Financial Services (NYSE:DFS) Q2 2023 Earnings Conference Call July 20, 2023 8:00 AM ET Company Participants Eric Wasserstrom - Head of IR Roger Hochschild - CEO John Greene - CFO Conference Call Participants Rick Shane - JPMorgan Jeff Adelson - Morgan Stanley Ryan Nash - Goldman Sachs John Hecht - Jefferies Don Fandetti - Wells Fargo Sanjay Sakhrani - KBW Kevin Barker - Piper Sandler Mihir Bhatia - Bank of America Nick Holowko - UBS Bob Napoli - William Blair Arren Cyganovich - Citi Dominick Gabri ...

Exhibit 99.3 2Q23 Financial Results July 19, 2023 ...