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Discover (DFS) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended June 2023, Discover (DFS - Free Report) reported revenue of $3.88 billion, up 20.3% over the same period last year. EPS came in at $3.54, compared to $3.96 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $3.87 billion, representing a surprise of +0.13%. The company delivered an EPS surprise of -3.28%, with the consensus EPS estimate being $3.66.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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 charge-offs as a percentage of total loans: 3.22% versus 3.4% estimated by 15 analysts on average.
Net interest margin: 11.06% versus the 15-analyst average estimate of 11.23%.
Operating Efficiency Ratio: 36.2% versus 36.35% estimated by 13 analysts on average.
Credit Card Volume - Discover Card Sales: $55.23 billion versus $57.60 billion estimated by 10 analysts on average.
Total Non-Interest Income: $701 million versus $674.08 million estimated by 17 analysts on average. Compared to the year-ago quarter, this number represents a +14.2% change.
Net Interest Income: $3.18 billion versus $3.20 billion estimated by 17 analysts on average. Compared to the year-ago quarter, this number represents a +21.7% change.
Discount and interchange revenue: $370 million compared to the $382.82 million average estimate based on 14 analysts. The reported number represents a change of -5.1% year over year.
Protection Products Revenue: $44 million versus $45.73 million estimated by 13 analysts on average. Compared to the year-ago quarter, this number represents a +4.8% change.
Loan fee income: $186 million compared to the $168.37 million average estimate based on 13 analysts. The reported number represents a change of +31% year over year.
Transaction processing revenue: $72 million versus $67.17 million estimated by 12 analysts on average. Compared to the year-ago quarter, this number represents a +18% change.
Transactions Processed on Networks- Total: $2.70 billion versus $2.62 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +10.7% change.
Network Volume- PULSE Network: $69.01 billion compared to the $66.94 billion average estimate based on seven analysts. The reported number represents a change of +9.6% year over year.
Shares of Discover have returned +5.3% over the past month versus the Zacks S&P 500 composite's +3.4% 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) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended June 2023, Discover (DFS - Free Report) reported revenue of $3.88 billion, up 20.3% over the same period last year. EPS came in at $3.54, compared to $3.96 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $3.87 billion, representing a surprise of +0.13%. The company delivered an EPS surprise of -3.28%, with the consensus EPS estimate being $3.66.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
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 charge-offs as a percentage of total loans: 3.22% versus 3.4% estimated by 15 analysts on average.
- Net interest margin: 11.06% versus the 15-analyst average estimate of 11.23%.
- Operating Efficiency Ratio: 36.2% versus 36.35% estimated by 13 analysts on average.
- Credit Card Volume - Discover Card Sales: $55.23 billion versus $57.60 billion estimated by 10 analysts on average.
- Total Non-Interest Income: $701 million versus $674.08 million estimated by 17 analysts on average. Compared to the year-ago quarter, this number represents a +14.2% change.
- Net Interest Income: $3.18 billion versus $3.20 billion estimated by 17 analysts on average. Compared to the year-ago quarter, this number represents a +21.7% change.
- Discount and interchange revenue: $370 million compared to the $382.82 million average estimate based on 14 analysts. The reported number represents a change of -5.1% year over year.
- Protection Products Revenue: $44 million versus $45.73 million estimated by 13 analysts on average. Compared to the year-ago quarter, this number represents a +4.8% change.
- Loan fee income: $186 million compared to the $168.37 million average estimate based on 13 analysts. The reported number represents a change of +31% year over year.
- Transaction processing revenue: $72 million versus $67.17 million estimated by 12 analysts on average. Compared to the year-ago quarter, this number represents a +18% change.
- Transactions Processed on Networks- Total: $2.70 billion versus $2.62 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +10.7% change.
- Network Volume- PULSE Network: $69.01 billion compared to the $66.94 billion average estimate based on seven analysts. The reported number represents a change of +9.6% year over year.
View all Key Company Metrics for Discover here>>>Shares of Discover have returned +5.3% over the past month versus the Zacks S&P 500 composite's +3.4% 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.