Here's What Key Metrics Tell Us About Discover (DFS) Q4 Earnings

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]