We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Compared to Estimates, Discover (DFS) Q3 Earnings: A Look at Key Metrics
Read MoreHide Full Article
Discover (DFS - Free Report) reported $4.04 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 16.2%. EPS of $2.59 for the same period compares to $3.54 a year ago.
The reported revenue represents a surprise of +2.53% over the Zacks Consensus Estimate of $3.94 billion. With the consensus EPS estimate being $3.15, the EPS surprise was -17.78%.
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: 3.5% compared to the 3.7% average estimate based on 15 analysts.
Net interest margin: 11% compared to the 10.9% average estimate based on 14 analysts.
Operating Efficiency Ratio: 36% compared to the 38% average estimate based on 12 analysts.
Credit Card Volume - Discover Card: $58.97 billion versus the 10-analyst average estimate of $60.12 billion.
Transactions Processed on Networks- Total: $2.98 billion versus $2.71 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +17.4% change.
Network Volume- PULSE Network: $72.15 billion versus $68.36 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +13.7% change.
Network Volume- Total Payment Services: $91.77 billion versus $89.60 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change.
Transactions Processed on Networks- PULSE Network: $2.01 billion compared to the $1.74 billion average estimate based on six analysts.
Transactions Processed on Networks- Discover Network: $964 million compared to the $942.17 million average estimate based on six analysts.
Network Volume- Total Volume: $149 billion versus $149.08 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.9% change.
Digital Banking- Net interest income: $3.32 billion versus $3.27 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +16.9% change.
Network Volume- Network Partners: $9.90 billion versus the five-analyst average estimate of $11.41 billion. The reported number represents a year-over-year change of -16.8%.
Shares of Discover have returned +4.7% over the past month versus the Zacks S&P 500 composite's -1.6% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Compared to Estimates, Discover (DFS) Q3 Earnings: A Look at Key Metrics
Discover (DFS - Free Report) reported $4.04 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 16.2%. EPS of $2.59 for the same period compares to $3.54 a year ago.
The reported revenue represents a surprise of +2.53% over the Zacks Consensus Estimate of $3.94 billion. With the consensus EPS estimate being $3.15, the EPS surprise was -17.78%.
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: 3.5% compared to the 3.7% average estimate based on 15 analysts.
- Net interest margin: 11% compared to the 10.9% average estimate based on 14 analysts.
- Operating Efficiency Ratio: 36% compared to the 38% average estimate based on 12 analysts.
- Credit Card Volume - Discover Card: $58.97 billion versus the 10-analyst average estimate of $60.12 billion.
- Transactions Processed on Networks- Total: $2.98 billion versus $2.71 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +17.4% change.
- Network Volume- PULSE Network: $72.15 billion versus $68.36 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +13.7% change.
- Network Volume- Total Payment Services: $91.77 billion versus $89.60 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change.
- Transactions Processed on Networks- PULSE Network: $2.01 billion compared to the $1.74 billion average estimate based on six analysts.
- Transactions Processed on Networks- Discover Network: $964 million compared to the $942.17 million average estimate based on six analysts.
- Network Volume- Total Volume: $149 billion versus $149.08 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.9% change.
- Digital Banking- Net interest income: $3.32 billion versus $3.27 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +16.9% change.
- Network Volume- Network Partners: $9.90 billion versus the five-analyst average estimate of $11.41 billion. The reported number represents a year-over-year change of -16.8%.
View all Key Company Metrics for Discover here>>>Shares of Discover have returned +4.7% over the past month versus the Zacks S&P 500 composite's -1.6% 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.