For the quarter ended December 2024, Discover (DFS) reported revenue of $4.76 billion, up 13.4% over the same period last year. EPS came in at $5.11, compared to $1.54 in the year-ago quarter.The reported revenue represents a surprise of +8.40% over the Zacks Consensus Estimate of $4.39 billion. With the consensus EPS estimate being $3.17, the EPS surprise was +61.20%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expec ...

Discover (DFS) came out with quarterly earnings of $5.11 per share, beating the Zacks Consensus Estimate of $3.17 per share. This compares to earnings of $1.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 61.20%. A quarter ago, it was expected that this credit card issuer and lender would post earnings of $3.28 per share when it actually produced earnings of $3.69, delivering a surprise of 12.50%.Over the last four quarters ...

Discover Financial Services delivered a robust earnings report exceeding expectations, marked by significant revenue and income growth.Financial services industry player Discover Financial Services (DFS 4.35%) reported fourth quarter 2024 earnings on Wednesday, Jan. 22, that topped analyst consensus estimates. Discover noted a significant rise in net income to $1.3 billion or $5.11 per diluted share, far exceeding the analyst estimate of $3.61 per share. Revenue came in at $4.76 billion, higher than the $4. ...

Financial Performance - Net income for Q4 2024 increased by 253% to $1.291 billion compared to Q4 2023[1] - Total revenue net of interest expense for 2024 grew by 13% to $17.910 billion compared to 2023[1] - Basic EPS increased by 252% to $5.11 in Q4 2024 compared to Q4 2023[1] - Total non-interest income grew by 59% to $1.129 billion in Q4 2024 compared to Q4 2023[1] - Digital Banking segment's net interest income increased by 5% to $3,630 million in Q4 2024 compared to Q4 2023[7] - Non-interest income in the Digital Banking segment surged by 68% to $1,001 million in Q4 2024[7] - Total revenue net of interest expense for Digital Banking grew by 14% to $4,631 million in Q4 2024[7] - Payment Services segment's non-interest income rose by 9% to $128 million in Q4 2024[7] Loan and Credit Metrics - Total loan receivables decreased by 6% to $121.118 billion in Q4 2024 compared to Q4 2023[2] - Total Loans decreased by 4% to $120,764 million in Dec 31, 2024 compared to Dec 31, 2023[4] - Credit Card Loans increased by 1% to $101,059 million in Dec 31, 2024 compared to Dec 31, 2023[4] - Private Student Loans decreased by 86% to $1,458 million in Dec 31, 2024 compared to Dec 31, 2023[4] - Credit card loans ending balance increased by 1% to $102,786 million in Q4 2024 compared to $102,259 million in Q4 2023[5] - Private student loans were fully divested, resulting in a 100% decrease to $0 in Q4 2024 compared to $10,352 million in Q4 2023[6] - Personal loans ending balance increased by 5% to $10,314 million in Q4 2024 compared to $9,852 million in Q4 2023[6] - Net principal charge-off rate for personal loans increased by 146 bps to 4.06% in 2024 compared to 2.60% in 2023[6] - Gross principal charge-off rate increased by 163 bps to 5.80% in 2024 compared to 4.17% in 2023[5] - Net principal charge-off dollars increased by 46% to $5,911 million in 2024 compared to $4,042 million in 2023[5] - Delinquency rate (30 or more days) remained stable at 3.48% in 2024 compared to 3.45% in 2023[5] Liquidity and Capital - Total liquidity increased by 18% to $81.993 billion in Q4 2024 compared to Q4 2023[2] - Total equity increased by 26% to $17.926 billion in Q4 2024 compared to Q4 2023[2] - Total Common Equity increased by 28% to $16,870 million in Dec 31, 2024 compared to Dec 31, 2023[3] - Total Risk Based Capital Ratio improved to 16.5% in Dec 31, 2024 from 13.2% in Dec 31, 2023[3] - Tangible Common Equity (TCE) stood at $16,615 million at the end of Q4 2024[12] - Tangible Common Equity per share was $66.10 at the end of Q4 2024[12] Interest and Margin Metrics - Net interest margin improved by 31 basis points to 11.38% in 2024[1] - Net Interest Margin improved to 11.96% in Dec 31, 2024 from 10.98% in Dec 31, 2023[4] - Net Yield on Interest-earning Assets increased to 9.57% in Dec 31, 2024 from 9.30% in Dec 31, 2023[4] - Total Interest-bearing Deposits increased by 2% to $106,720 million in Dec 31, 2024 compared to Dec 31, 2023[4] Asset and Liability Metrics - Total assets decreased by 3% to $147.640 billion in Q4 2024 compared to Q4 2023[2] - Tangible Assets decreased by 3% to $147,385 million in Dec 31, 2024 compared to Dec 31, 2023[3] - Cash and Investment Securities grew by 32% to $29,724 million in Dec 31, 2024 compared to Dec 31, 2023[4] - Average loans increased by 6% to $125,638 million in 2024 compared to $118,311 million in 2023[5] Credit Loss Provisions - Provision for credit losses decreased by 37% to $1.202 billion in Q4 2024 compared to Q4 2023[1] - Provision for credit losses in Digital Banking decreased by 37% to $1,202 million in Q4 2024[7] Payment Services and Transactions - Total transactions processed on networks increased by 5% to 3,440 million in Q4 2024[7] - PULSE Network volume grew by 7% to $84,900 million in Q4 2024[7] - Total payment services volume increased by 4% to $102,416 million in Q4 2024[7] - Discover Card sales volume decreased by 3% to $212,251 million in 2024 compared to $217,914 million in 2023[5]

Discover Financial Services (DFS) is scheduled to release fourth-quarter 2024 results on Jan. 22, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings per share is pegged at $3.15, which indicates an improvement of more than one-fold from the prior-year quarter’s reported number.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Fourth-quarter earnings estimates have witnessed six upward revisions and one downward revision over the past month, gaining 7.1%. M ...

Wall Street analysts forecast that Discover (DFS) will report quarterly earnings of $3.15 per share in its upcoming release, pointing to a year-over-year increase of 104.6%. It is anticipated that revenues will amount to $4.39 billion, exhibiting an increase of 4.7% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 2.6% to its current level. This demonstrates the covering analysts' collective reassessment of their initial project ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Discover (DFS) , which belongs to the Zacks Financial - Consumer Loans industry.When looking at the last two reports, this credit card issuer and lender has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 55.27%, on average, in the last two quarters.For the most recent quarter, Discover was expected to post earni ...

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Net Interest Income and Margin - Net Interest Income increased by 10% to $3.655 billion in Q3 2024 compared to $3.322 billion in Q3 2023[1] - Net Interest Margin improved by 43 basis points to 11.38% in Q3 2024 from 10.95% in Q3 2023[1] - Net Interest Margin improved by 43 bps to 11.38% in Q3 2024, up from 10.95% in Q3 2023[7] - Net Yield on Interest-earning Assets improved by 25 bps to 9.54% in Q3 2024, up from 9.29% in Q3 2023[7] - Interest yield rose to 15.06% in Sep 30, 2024, up 62 basis points (bps) from 14.44% in Sep 30, 2023[8] - Interest yield on personal loans increased by 89 bps YoY to 13.58% for the nine months ended Sep 30, 2024[10] Non-Interest Income and Revenue - Total Non-Interest Income grew by 11% to $798 million in Q3 2024 from $722 million in Q3 2023[1] - Total revenue for Q3 2024 increased by 17% year-over-year to $26.423 billion, compared to $22.569 billion in Q3 2023[3] Credit Losses and Provisions - Provision for Credit Losses decreased by 13% to $1.473 billion in Q3 2024 from $1.702 billion in Q3 2023[1] - Allowance for credit losses decreased to $8,512 million in Sep 30, 2024, down 2% from $8,665 million in Sep 30, 2023[8] - Provision for credit losses in digital banking decreased by $400 million (10%) YoY to $3.709 billion for the nine months ended Sep 30, 2024[11] Net Income and Earnings Per Share - Net Income rose by 41% to $965 million in Q3 2024 compared to $683 million in Q3 2023[1] - Basic EPS increased by 42% to $3.69 in Q3 2024 from $2.59 in Q3 2023[1] Operating Efficiency and Expenses - Operating Efficiency worsened by 200 basis points to 38.0% in Q3 2024 from 36.0% in Q3 2023[1] - Total operating expenses for digital banking increased by $1.479 billion (36%) YoY to $5.589 billion for the nine months ended Sep 30, 2024[11] Capital and Equity Metrics - Total common equity increased by 23% year-over-year to $16.204 billion in Q3 2024, compared to $13.180 billion in Q3 2023[5] - Tangible common equity per share rose by 23% year-over-year to $63.49 in Q3 2024, up from $51.69 in Q3 2023[5] - Total risk-based capital ratio improved to 15.0% in Q3 2024, up from 14.1% in Q3 2023[4] - Tier 1 risk-based capital ratio increased to 13.5% in Q3 2024, compared to 12.5% in Q3 2023[4] - Common equity tier 1 capital ratio rose to 12.7% in Q3 2024, up from 11.6% in Q3 2023[4] - Tangible Common Equity (TCE) as of Sep 30, 2024, is $15,949 million, up from $12,925 million in Sep 30, 2023[14] - GAAP Book Value Per Share increased to $68.71 as of Sep 30, 2024, compared to $56.93 in Sep 30, 2023[14] - Tangible Common Equity Per Share rose to $63.49 as of Sep 30, 2024, from $51.69 in Sep 30, 2023[14] - Total Common Equity grew to $16,204 million as of Sep 30, 2024, up from $13,180 million in Sep 30, 2023[14] - TCE is a non-GAAP measure representing common equity less goodwill and intangibles, considered a meaningful measure of the company's net asset value[13] Asset and Loan Growth - Net loans grew by 4% year-over-year to $126.993 billion in Q3 2024, up from $122.676 billion in Q3 2023[3] - Total tangible assets grew by 6% year-over-year to $151.338 billion in Q3 2024, compared to $143.177 billion in Q3 2023[5] - Total Assets increased by 8% to $151.647 billion in Q3 2024 compared to $140.881 billion in Q3 2023[7] - Credit Card Loans grew by 5% to $100.290 billion in Q3 2024, up from $95.796 billion in Q3 2023[7] - Personal Loans increased by 11% to $10.428 billion in Q3 2024, compared to $9.368 billion in Q3 2023[7] - Other Loans surged by 49% to $7.358 billion in Q3 2024, up from $4.942 billion in Q3 2023[7] - Total Loans increased by 6% to $127.707 billion in Q3 2024, compared to $120.380 billion in Q3 2023[7] - Total loan receivables increased to $126,993 million as of Sep 30, 2024, up 4% year-over-year from $122,676 million in Sep 30, 2023[8] - Credit card loans ending balance reached $100,489 million in Sep 30, 2024, up 3% year-over-year from $97,389 million in Sep 30, 2023[8] - Private student loans decreased by $1.862 billion (19%) YoY to $8.484 billion as of Sep 30, 2024[10] - Personal loans increased by $879 million (9%) YoY to $10.438 billion as of Sep 30, 2024[10] Deposits and Borrowings - Total deposits increased by 6% year-over-year to $151.593 billion in Q3 2024, up from $143.432 billion in Q3 2023[3] - Total borrowings decreased by 15% year-over-year to $9.307 billion in Q3 2024, down from $10.889 billion in Q3 2023[3] - Total Interest-bearing Deposits rose by 8% to $107.286 billion in Q3 2024, compared to $99.606 billion in Q3 2023[7] - Certificates of Deposits grew by 30% to $27.839 billion in Q3 2024, compared to $21.473 billion in Q3 2023[7] - Restricted Cash increased by 169% to $641 million in Q3 2024, up from $238 million in Q3 2023[7] Credit Metrics - Gross principal charge-off rate increased to 5.91% in Sep 30, 2024, up 167 bps from 4.24% in Sep 30, 2023[8] - Delinquency rate (30 or more days) rose to 3.46% in Sep 30, 2024, up 40 bps from 3.06% in Sep 30, 2023[8] - Net principal charge-off dollars for credit card loans increased to $1,332 million in Sep 30, 2024, up 37% year-over-year from $973 million in Sep 30, 2023[8] - Reserve rate for credit card loans rose to 7.55% in Sep 30, 2024, up 29 bps from 7.26% in Sep 30, 2023[8] - Net principal charge-off rate for personal loans increased by 170 bps YoY to 4.00% for the nine months ended Sep 30, 2024[10] - Delinquency Rate (30 or more days) and Gross Principal Charge-off Rate are key credit metrics, calculated based on loans delinquent and charge-off dollars[12] Digital Banking and Payment Services - Net interest income for digital banking grew by $1.035 billion (11%) YoY to $10.666 billion for the nine months ended Sep 30, 2024[11] - Total payment services network volume increased by $30.036 billion (7%) YoY to $462.377 billion for the nine months ended Sep 30, 2024[11] - PULSE Network volume grew by $36.973 billion (18%) YoY to $243.395 billion for the nine months ended Sep 30, 2024[11] - Discover Network transactions processed decreased by 19 million (1%) YoY to 2.773 billion for the nine months ended Sep 30, 2024[11] Stock and Shareholder Metrics - Common Stock Price rose by 62% to $140.29 at the end of Q3 2024 from $86.63 at the end of Q3 2023[1] - Book Value per Share increased by 21% to $68.71 in Q3 2024 from $56.93 in Q3 2023[1] - GAAP Book Value Per Share increased to $68.71 as of Sep 30, 2024, compared to $56.93 in Sep 30, 2023[14] - Tangible Common Equity Per Share rose to $63.49 as of Sep 30, 2024, from $51.69 in Sep 30, 2023[14] - Preferred Stock adjustments were consistent, with a slight decrease from $4.22 in Sep 30, 2023, to $4.20 in Sep 30, 2024[14] Regulatory and Non-GAAP Measures - Regulatory Capital Ratios, including Total Risk Based Capital Ratio and Tier 1 Capital Ratio, are preliminary and based on risk-weighted assets[12] - TCE is a non-GAAP measure representing common equity less goodwill and intangibles, considered a meaningful measure of the company's net asset value[13] Other Financial Metrics - Total Liquidity details were not fully disclosed in the balance sheet summary[2] - Goodwill remained constant at $255 million across all reported periods[14] - Intangibles were negligible, with no changes reported across all periods[14] - Discover Card sales volume declined to $53,380 million in Sep 30, 2024, down 3% year-over-year from $54,952 million in Sep 30, 2023[8] - Total Discover Card volume decreased to $56,593 million in Sep 30, 2024, down 4% year-over-year from $58,965 million in Sep 30, 2023[8]