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Discover (DFS) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
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For the quarter ended March 2023, Discover (DFS - Free Report) reported revenue of $3.75 billion, up 29.3% over the same period last year. EPS came in at $3.58, compared to $4.22 in the year-ago quarter.
The reported revenue represents a surprise of +2.58% over the Zacks Consensus Estimate of $3.66 billion. With the consensus EPS estimate being $3.84, the EPS surprise was -6.77%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Discover performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net interest margin: 11.34% compared to the 11.31% average estimate based on seven analysts.
Net charge-offs as a percentage of total loans: 2.72% compared to the 2.92% average estimate based on six analysts.
Average Balances-Interest earning assets: $132.22 billion compared to the $126.35 billion average estimate based on five analysts.
Credit Card Volume - Discover Card Sales: $50.59 billion versus $50.37 billion estimated by five analysts on average.
Total Non-Interest Income: $621 million versus the nine-analyst average estimate of $604.13 million. The reported number represents a year-over-year change of +46.8%.
Net Interest Income: $3.13 billion versus the nine-analyst average estimate of $3.04 billion. The reported number represents a year-over-year change of +26.3%.
Discount and interchange revenue: $341 million versus $319.29 million estimated by seven analysts on average.
Loan fee income: $166 million versus $174.38 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +18.6% change.
Protection Products Revenue: $43 million versus $44.10 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -2.3% change.
Transaction processing revenue: $67 million versus $61.35 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +17.5% change.
Transactions Processed on Networks- Total: $2.48 billion versus $2.45 billion estimated by three analysts on average.
Payment Services- Revenue Net of Interest Expense: $88 million compared to the $92.37 million average estimate based on three analysts. The reported number represents a change of -239.7% year over year.
Shares of Discover have returned +5.4% over the past month versus the Zacks S&P 500 composite's +6.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Discover (DFS) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
For the quarter ended March 2023, Discover (DFS - Free Report) reported revenue of $3.75 billion, up 29.3% over the same period last year. EPS came in at $3.58, compared to $4.22 in the year-ago quarter.
The reported revenue represents a surprise of +2.58% over the Zacks Consensus Estimate of $3.66 billion. With the consensus EPS estimate being $3.84, the EPS surprise was -6.77%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Discover performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Net interest margin: 11.34% compared to the 11.31% average estimate based on seven analysts.
- Net charge-offs as a percentage of total loans: 2.72% compared to the 2.92% average estimate based on six analysts.
- Average Balances-Interest earning assets: $132.22 billion compared to the $126.35 billion average estimate based on five analysts.
- Credit Card Volume - Discover Card Sales: $50.59 billion versus $50.37 billion estimated by five analysts on average.
- Total Non-Interest Income: $621 million versus the nine-analyst average estimate of $604.13 million. The reported number represents a year-over-year change of +46.8%.
- Net Interest Income: $3.13 billion versus the nine-analyst average estimate of $3.04 billion. The reported number represents a year-over-year change of +26.3%.
- Discount and interchange revenue: $341 million versus $319.29 million estimated by seven analysts on average.
- Loan fee income: $166 million versus $174.38 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +18.6% change.
- Protection Products Revenue: $43 million versus $44.10 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -2.3% change.
- Transaction processing revenue: $67 million versus $61.35 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +17.5% change.
- Transactions Processed on Networks- Total: $2.48 billion versus $2.45 billion estimated by three analysts on average.
- Payment Services- Revenue Net of Interest Expense: $88 million compared to the $92.37 million average estimate based on three analysts. The reported number represents a change of -239.7% year over year.
View all Key Company Metrics for Discover here>>>Shares of Discover have returned +5.4% over the past month versus the Zacks S&P 500 composite's +6.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.