Discover (DFS) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates

Core Insights - Discover reported revenue of $4.2 billion for Q4 2023, reflecting a year-over-year increase of 12.4% and a surprise of +2.41% over the Zacks Consensus Estimate of $4.1 billion [1] - The EPS for the quarter was $1.54, a significant decrease from $3.77 in the same quarter last year, with an EPS surprise of -38.40% compared to the consensus estimate of $2.50 [1] Financial Metrics - Net interest margin was reported at 11%, exceeding the average estimate of 10.8% from 16 analysts [2] - Net charge-offs as a percentage of total loans stood at 4.1%, slightly below the average estimate of 4.2% from 15 analysts [2] - Operating Efficiency Ratio was 42.3%, higher than the estimated 38.7% by 15 analysts [2] - Average balances of interest-earning assets were $147.94 billion, surpassing the estimate of $146.22 billion from 10 analysts [2] - Tier 1 Capital to Risk-weighted assets was 12.1%, slightly below the estimate of 12.2% from 10 analysts [2] - Credit Card Volume for Discover Card Sales reached $57.15 billion, exceeding the average estimate of $56.87 billion from nine analysts [2] - Total Capital to Risk-weighted assets was reported at 13.7%, below the average estimate of 13.9% from eight analysts [2] - Total transactions processed on networks were $3.28 billion, higher than the estimate of $2.93 billion from eight analysts [2] - Credit Card Volume for Discover Card was $60.92 billion, compared to the average estimate of $60.52 billion from eight analysts [2] - Transactions processed on the Discover Network were $974 million, below the average estimate of $995.21 million from seven analysts [2] - Network Volume for the PULSE Network was $79.19 billion, exceeding the average estimate of $73.40 billion from six analysts [2] - Transactions processed on the PULSE Network were $2.31 billion, higher than the average estimate of $1.93 billion from six analysts [2] Stock Performance - Discover shares have returned +0.6% over the past month, compared to the Zacks S&P 500 composite's +1.2% 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]