RIVERWOODS, ILLINOIS - FEBRUARY 19: A sign sits at the entrance of the Discover Financial Services ... [+] corporate headquarters campus on February 19, 2024 in Riverwoods, Illinois. (Photo by Scott Olson/Getty Images)Getty ImagesDiscover Financial (NYSE: DFS) stock gained 22% YTD, as compared to the 18% rise in the S&P500 index. Notably, Discover Financial’s peer American Express (NYSE: AXP) is up 30% YTD. Overall, DFS is scheduled to report its fiscal Q2 2024 results on Thursday, July 18, 2024. We expect ...

Core Viewpoint - Discover Financial Services (DFS) is anticipated to report an earnings beat for Q2 2024, with earnings per share estimated at $3.06, reflecting a 4.8% increase in estimates over the past 60 days, despite a year-over-year decline of 13.6% [1][2]. Earnings Estimates - The Zacks Consensus Estimate for Q2 revenues is $4.2 billion, indicating a 7.3% growth compared to the same quarter last year [1]. - The current earnings estimate for Q1 is $3.06, while the estimates for future quarters (F1 and F2) are $11.77 and $13.03 respectively [2]. Earnings Surprise History - Discover Financial has missed consensus estimates in the last four quarters, with an average surprise of -30.64% [3][4]. Earnings Prediction Model - The earnings prediction model suggests a potential earnings beat for Discover Financial, supported by a positive Earnings ESP of +1.26% and a Zacks Rank of 3 (Hold) [5]. Revenue Drivers - Revenue growth is expected to be driven by resilient transaction volumes and higher net interest income, with net interest income estimated at $3.44 billion, reflecting an 8.4% increase year-over-year [6]. - Non-interest income is projected to reach $716 million, indicating a 2.1% year-over-year increase, benefiting from improved net discount and interchange revenues [7]. Cost Factors - Operating costs are anticipated to rise by 4.6% year-over-year, influenced by increased compensation costs, marketing expenses, and professional fees [8]. Overall Outlook - Despite challenges from rising operating costs and net funding costs, Discover Financial's revenue growth from net interest and non-interest income, along with strong transaction volumes, positions the stock as a compelling hold for investors [9].

Core Insights - Discover (DFS) is expected to report quarterly earnings of $3.06 per share, a decline of 13.6% year-over-year, with revenues projected at $4.16 billion, reflecting a 7.3% increase [1] - Analysts have revised the consensus EPS estimate upward by 2.2% over the past 30 days, indicating a reappraisal of initial projections [1] Financial Metrics - The 'Operating Efficiency Ratio' is estimated to reach 36.9%, up from 36.2% a year ago [2] - 'Credit Card Volume - Discover Card Sales' is projected at $55.30 billion, slightly higher than the previous year's $55.23 billion [2] - 'Net charge-offs as a percentage of total loans' is expected to rise to 5.1%, compared to 3.2% in the same quarter last year [2] - The 'Net interest margin' is forecasted to be 10.9%, down from 11.1% a year ago [3] - 'Credit Card Volume - Discover Card' is estimated at $59.39 billion, compared to $58.77 billion in the same quarter last year [3] - 'Average Balances - Total Interest Earning Assets' is projected to reach $152.47 billion, up from $136.59 billion a year ago [3] - The 'Total Risk Based Capital Ratio' is expected to be 13.2%, down from 14.3% in the same quarter last year [3] - 'Network Volume - Total Payment Services' is anticipated to reach $98.08 billion, compared to $89.31 billion a year ago [3] - 'Transactions Processed on Networks - Discover Network' is expected to be 984.96 million, up from 940 million a year ago [4] - 'Tier 1 Risk Based Capital Ratio' is projected at 11.9%, down from 12.5% a year ago [4] - 'Transactions Processed on Networks - Total' is expected to reach 3.07 billion, compared to 2.70 billion a year ago [4] - 'Network Volume - Network Partners' is estimated at $10.60 billion, slightly up from $10.41 billion a year ago [4] Market Performance - Discover shares have returned +7.5% over the past month, outperforming the Zacks S&P 500 composite's +4.3% change [5] - With a Zacks Rank 3 (Hold), Discover is expected to mirror overall market performance in the near future [5]

JHVEPhoto While up 10% over the past year, shares of Discover Financial (NYSE:DFS) have had a volatile journey. Management turnover and rising credit losses weighed on shares in mid-2023 and January 2024, but this was upset by the surprising news that Capital One Financial (COF) would acquire DFS, sending shares rallying. I last covered DFS before Q4 earnings, rating shares a “sell.” While they did indeed fall on the earnings report as expected, the COF bid later caused shares to rally. As such, shares ...

Discover Financial Services (DFS) recently announced a collaboration with the Exchange Credit Program to broaden acceptance of the MILITARY STAR card across military installations. This collaboration, set to start in September 2024, marks a significant expansion for Discover in the military market.This move bodes well for DFS as it will be able to enhance service for military communities and provide seamless payment solutions through its Discover Global Network. The MILITARY STAR card, managed by the Army & ...

The Q2 earnings season is just around the corner, with the big banks kicking the period into a much higher gear starting this Friday with their results. The overall earnings picture has remained stable leading up to the period, with Tech expected to deliver another big showing.Of course, there are some worthy reports that investors should keep on their radars, a list that includes beloved Nvidia (NVDA) , McDonald’s (MCD) , and Discover Financial Services (DFS) .With Nvidia, we’ll get some more color on the ...

The market expects Discover (DFS) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Jul ...

Discover Financial Services (DFS) recently announced that it has introduced Balance+, a new overdraft protection tool for its debit card customers. This new feature for its Cashback Debit Checking account will offer fee-free overdraft protection for debit card purchases, allowing customers to overdraw their account by up to $200 without incurring any fees.To qualify, accounts must be in good standing, have a positive balance and receive at least one direct deposit of $200 or more each month for the last two ...

Discover Financial Services (DFS) recently announced a strategic partnership with the Network for Electronic Transfers (“NETS") in a bid to expand its footprint in Singapore. This collaboration aims to enhance payment experience for DFS’ cardholders in Singapore, by providing flexibility to use their cards at Point-of-Sale across the country.This move bodes well for DFS as it will be leveraging NETS’s huge network of 130,000 plus acceptance points. DFS’s cardholders can access Point of Sale in segments like ...

It has been about a month since the last earnings report for Discover (DFS) . Shares have added about 0.4% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Discover due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Discover Financial Q1 Earnings Miss on High CostsD ...