Core Insights - Discover Financial Services (DFS) reported strong fourth-quarter 2024 results, with adjusted earnings per share of $5.11, significantly exceeding the Zacks Consensus Estimate of $3.17 and more than tripling year over year [1][6] - The company's revenues, net of interest expenses, increased by 13.9% year over year to $4.8 billion, surpassing the consensus mark by 8.4% [2][3] Financial Performance - Interest income rose to $5 billion, a 2% increase year over year, while interest expense decreased by 3% to $1.4 billion [4] - Non-interest income surged by 59% year over year to $1.1 billion, beating the Zacks Consensus Estimate by 29.5% [4] - Total operating expenses increased by 4% year over year to $1.9 billion, driven by higher employee compensation and professional fees [5] Segment Performance - The Digital Banking segment reported a pretax income of $1.6 billion, nearly four times higher year over year, attributed to lower provisions for credit losses and growing revenues [7] - Total loans decreased by 4% year over year to $120.8 billion, with personal loans growing by 7% and credit card loans improving by 1% [8] - The Payment Services segment's pretax income was $74 million, up from $54 million in the prior year, but missed the consensus estimate [9] Financial Position - As of December 31, 2024, total assets were $147.6 billion, down from $151.7 billion at the end of 2023, while total equity rose to $17.9 billion [11][12] - Borrowings decreased from $21.3 billion at the end of 2023 to $16.3 billion [12] Capital Deployment and Guidance - The company has paused share repurchases due to a merger agreement with Capital One Financial Corporation valued at $35.3 billion [13] - Management expects loan growth to follow pre-pandemic trends and net interest margin to remain consistent with the fourth quarter level of 11.96% [14]

Financial Data and Key Metrics - No specific financial data or key metrics changes mentioned in the provided content [1][2][3][4][5] Business Line Data and Key Metrics - No specific business line data or key metrics changes mentioned in the provided content [1][2][3][4][5] Market Data and Key Metrics - No specific market data or key metrics changes mentioned in the provided content [1][2][3][4][5] Company Strategy and Industry Competition - The company's top goals for 2024 included operating profitably and safely, strengthening risk management and compliance, sustaining outstanding customer service, and preparing for the successful completion of the merger with Capital One [5] Management Commentary on Operating Environment and Future Outlook - 2024 was described as a good and transformative year for the company, with a focus on achieving the aforementioned goals [5] Other Important Information - The call contained forward-looking statements subject to risks and uncertainties, with references to the company's earnings press release, presentation, and SEC filings for detailed risk factors [3] - No question-and-answer session was held, but the Investor Relations team was available for inquiries [4] Summary of Q&A Session - No Q&A session was conducted during the call [4]

Notice The following slides are part of a presentation by Discover Financial Services (the "Company") in connection with reporting quarterly financial results and are intended to be viewed as part of that presentation. No representation is made that the information in these slides is complete. For additional financial, statistical, and business related information, as well as information regarding business and segment trends, see the earnings release and financial supplement included as exhibits to the Comp ...

Core Insights - Discover (DFS) reported a revenue of $4.76 billion for the quarter ended December 2024, reflecting a year-over-year increase of 13.4% and surpassing the Zacks Consensus Estimate by 8.40% [1] - The earnings per share (EPS) for the quarter was $5.11, a significant increase from $1.54 in the same quarter last year, resulting in an EPS surprise of 61.20% compared to the consensus estimate of $3.17 [1] Financial Performance Metrics - Net Interest Margin was reported at 12%, exceeding the average estimate of 11.4% from 15 analysts [4] - Operating Efficiency stood at 39%, slightly above the estimated 38.7% from 14 analysts [4] - The Net Principal Charge-off Rate was 4.2%, lower than the average estimate of 5% based on 14 analysts [4] - Discover Card Sales Volume reached $55.25 billion, slightly below the average estimate of $56.36 billion from 14 analysts [4] - Total Discover Card Volume was $58.31 billion, compared to the average estimate of $59.67 billion from 10 analysts [4] - Total Payment Services Network Volume was $102.42 billion, below the estimated $105.64 billion from 10 analysts [4] - Diners Club International Network Volume was $11.44 billion, exceeding the average estimate of $10.86 billion from nine analysts [4] - Network Partners Volume was $6.08 billion, significantly lower than the average estimate of $8.28 billion from nine analysts [4] - PULSE Network Volume was $84.90 billion, below the estimated $86.86 billion from nine analysts [4] - Average Balances of Total Interest Earning Assets were $150.89 billion, slightly below the average estimate of $151.88 billion from nine analysts [4] - Tier 1 Risk Based Capital Ratio was reported at 15%, higher than the average estimate of 14.3% from nine analysts [4] - Total Transactions Processed on Networks were 3.44 billion, below the average estimate of 3.67 billion from nine analysts [4] Stock Performance - Discover's shares have returned +7.2% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

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 ...