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 ...

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 March 31, 2024 Commission File Number 001-33378 DISCOVER FINANCIAL SERVICES (Exact name of registrant as specified in its charter) Delaware ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or other jurisdiction of incorporation or organization) For ...

Discover Financial Services (DFS) reported first-quarter 2024 adjusted earnings per share (EPS) of $1.10, which missed the Zacks Consensus Estimate by 63.1%. The bottom line declined 69.3% year over year.DFS' revenues, net of interest expenses, climbed 12.3% year over year to $4.2 billion. The top line beat the consensus mark by 3.7%.The weak first-quarter earnings were due to escalating operating costs, feeble contributions from the Digital Banking segment and higher provision for credit losses. The compan ...

The $35 billion deal for Capital One to buy Discover Financial Services remains on track.And in a truncated first-quarter earnings call — where the usual question-and-answer session was not part of the proceedings — Discover’s management noted that consumer loans are on the upswing. In the meantime, credit card spending has been pressured by inflation.CFO John Greene said in his prepared remarks on the Thursday (April 18) call that card sales were down 1% compared to the prior year quarter.“Sales slowed acr ...

Financial Data and Key Metrics - Net income for Q1 2024 was $308 million, down 68% YoY, primarily due to a $799 million increase in the reserve for remediation related to the card misclassification issue [10] - Excluding the remediation reserve, net income would have been approximately $915 million, with EPS of $3.50 per share and an efficiency ratio under 36% [11] - Net interest margin (NIM) was 11.03%, down 31 basis points YoY but up 5 basis points sequentially [11] - Total net charge-offs were 4.92%, up 220 basis points YoY and 81 basis points sequentially [16] - Common equity Tier 1 ratio was 10.9%, down 40 basis points sequentially [18] Business Line Performance - Card receivables increased 11% YoY, driven by lower payment rates and prior year new account growth [12] - Discover card sales declined 1% YoY, with the largest decline in the everyday category (supermarkets, gas, wholesale clubs) [12] - Personal loans grew 21% YoY, with 50% of Q1 originations used for debt consolidation [13] - Student loans were flat YoY, with the company stopping new applications on February 1 and targeting a sale closing in late Q3 or Q4 [13] - Direct-to-consumer deposit balances grew $3 billion, with average deposits up 18% YoY and 4% sequentially [14] Market Performance - Noninterest income increased $113 million or 19%, driven by higher net discount and interchange revenue, loan fee income, and transaction processing revenue from PULSE [14] - PULSE debit volume increased by $13.8 billion or 21% YoY [14] - Rewards rate was 139 basis points, down 2 basis points YoY due to lower cash back match and active management of 5% categories [14] Strategic Direction and Industry Competition - The company is focused on maximizing shareholder value through risk management, compliance, and customer service, while positioning for long-term value creation [7] - The merger with Capital One is progressing, with merger applications submitted to the Federal Reserve and OCC [8] - The combined company aims to be a competitive payments network and well-positioned bank, supporting customer financial goals and community commitments [8] Management Commentary on Operating Environment and Future Outlook - Management expects loan growth in low single digits, driven by declining payment rates and modest new account contributions [19] - Net interest margin is expected to range between 10.7% and 11%, reflecting fewer rate cuts and proactive deposit rate management [19] - Core operating expenses are expected to increase mid-single digits, excluding remediation and merger-related costs [20] - Net charge-offs are expected to range between 4.9% and 5.2%, with the base case at the lower end of the range [20] - Share repurchases are suspended, and dividends will not be increased due to the merger agreement [20] Other Important Information - The company increased its liability for the card misclassification issue, which is expected to advance the resolution of the issue [6][10] - The CFPB late fee proposal, if implemented, could result in a pretax reduction of around $600 million annually [15] - Compliance and risk management expenses for the year are expected to remain around $500 million, excluding remediation-related costs [16] Q&A Session - No Q&A session was held during the call, with questions directed to the Investor Relations team [3][4]

Discover (DFS) reported $4.21 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 12.2%. EPS of $1.10 for the same period compares to $3.58 a year ago.The reported revenue represents a surprise of +3.68% over the Zacks Consensus Estimate of $4.06 billion. With the consensus EPS estimate being $2.98, the EPS surprise was -63.09%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine thei ...