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What Analyst Projections for Key Metrics Reveal About Discover (DFS) Q4 Earnings

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Wall Street analysts expect Discover (DFS - Free Report) to post quarterly earnings of $2.50 per share in its upcoming report, which indicates a year-over-year decline of 33.7%. Revenues are expected to be $4.09 billion, up 9.7% from the year-ago quarter.

Over the last 30 days, there has been an upward revision of 2.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

Bearing this in mind, let's now explore the average estimates of specific Discover metrics that are commonly monitored and projected by Wall Street analysts.

According to the collective judgment of analysts, 'Transactions Processed on Networks- Total' should come in at $2.93 billion. The estimate points to a change of +12% from the year-ago quarter.

Analysts' assessment points toward 'Network Volume- PULSE Network' reaching $73.40 billion. The estimate points to a change of +9.9% from the year-ago quarter.

It is projected by analysts that the 'Network Volume- Total Payment Services' will reach $92.40 billion. The estimate indicates a change of +7% from the prior-year quarter.

Analysts forecast 'Digital Banking- Net interest income' to reach $3.37 billion. The estimate indicates a change of +9.8% from the prior-year quarter.

The consensus estimate for 'Network Volume- Diners Club' stands at $10.21 billion. The estimate indicates a change of +11.6% from the prior-year quarter.

The average prediction of analysts places 'Net interest margin' at 10.8%. Compared to the present estimate, the company reported 11.3% in the same quarter last year.

Analysts expect 'Operating Efficiency Ratio' to come in at 38.7%. The estimate is in contrast to the year-ago figure of 40%.

The consensus among analysts is that 'Tier 1 Capital to Risk-weighted assets' will reach 12.2%. The estimate is in contrast to the year-ago figure of 14.3%.

The collective assessment of analysts points to an estimated 'Average Balances-Interest earning assets' of $145.66 billion. Compared to the present estimate, the company reported $127.96 billion in the same quarter last year.

Analysts predict that the 'Credit Card Volume - Discover Card Sales' will reach $56.87 billion. Compared to the current estimate, the company reported $55.66 billion in the same quarter of the previous year.

The combined assessment of analysts suggests that 'Credit Card Volume - Discover Card' will likely reach $60.52 billion. The estimate is in contrast to the year-ago figure of $59.15 billion.

Based on the collective assessment of analysts, 'Total Capital to Risk-weighted assets' should arrive at 13.9%. The estimate is in contrast to the year-ago figure of 16%.

View all Key Company Metrics for Discover here>>>

Over the past month, Discover shares have recorded returns of +4.9% versus the Zacks S&P 500 composite's +4% change. Based on its Zacks Rank #3 (Hold), DFS will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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