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Discover (DFS) Reports Q1 Earnings: What Key Metrics Have to Say
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Discover (DFS - Free Report) reported $4.21 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 12.2%. EPS of $1.10 for the same period compares to $3.58 a year ago.
The reported revenue represents a surprise of +3.68% over the Zacks Consensus Estimate of $4.06 billion. With the consensus EPS estimate being $2.98, the EPS surprise was -63.09%.
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: 4.9% compared to the 4.7% average estimate based on 13 analysts.
Net interest margin: 11% versus the 13-analyst average estimate of 10.8%.
Operating Efficiency Ratio: 54.9% versus the 13-analyst average estimate of 38.6%.
Credit Card Volume - Discover Card Sales: $50.14 billion compared to the $51.19 billion average estimate based on 11 analysts.
Transactions Processed on Networks - Discover Network: $883 million versus $888.03 million estimated by nine analysts on average.
Credit Card Volume - Discover Card: $53.24 billion versus the nine-analyst average estimate of $54.70 billion.
Tier 1 Capital to Risk-weighted assets: 11.7% compared to the 12.5% average estimate based on nine analysts.
Transactions Processed on Networks - Total: $3.20 billion versus the nine-analyst average estimate of $2.89 billion.
Transactions Processed on Networks - PULSE Network: $2.31 billion compared to the $2.01 billion average estimate based on eight analysts.
Network Volume - Total Payment Services: $100.32 billion versus the eight-analyst average estimate of $91.34 billion.
Average Balances - Total Interest Earning Assets: $153.35 billion versus $147.66 billion estimated by eight analysts on average.
Total Capital to Risk-weighted assets: 13.3% versus 13.9% estimated by eight analysts on average.
Shares of Discover have returned -1.4% over the past month versus the Zacks S&P 500 composite's -1.1% 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) Reports Q1 Earnings: What Key Metrics Have to Say
Discover (DFS - Free Report) reported $4.21 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 12.2%. EPS of $1.10 for the same period compares to $3.58 a year ago.
The reported revenue represents a surprise of +3.68% over the Zacks Consensus Estimate of $4.06 billion. With the consensus EPS estimate being $2.98, the EPS surprise was -63.09%.
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: 4.9% compared to the 4.7% average estimate based on 13 analysts.
- Net interest margin: 11% versus the 13-analyst average estimate of 10.8%.
- Operating Efficiency Ratio: 54.9% versus the 13-analyst average estimate of 38.6%.
- Credit Card Volume - Discover Card Sales: $50.14 billion compared to the $51.19 billion average estimate based on 11 analysts.
- Transactions Processed on Networks - Discover Network: $883 million versus $888.03 million estimated by nine analysts on average.
- Credit Card Volume - Discover Card: $53.24 billion versus the nine-analyst average estimate of $54.70 billion.
- Tier 1 Capital to Risk-weighted assets: 11.7% compared to the 12.5% average estimate based on nine analysts.
- Transactions Processed on Networks - Total: $3.20 billion versus the nine-analyst average estimate of $2.89 billion.
- Transactions Processed on Networks - PULSE Network: $2.31 billion compared to the $2.01 billion average estimate based on eight analysts.
- Network Volume - Total Payment Services: $100.32 billion versus the eight-analyst average estimate of $91.34 billion.
- Average Balances - Total Interest Earning Assets: $153.35 billion versus $147.66 billion estimated by eight analysts on average.
- Total Capital to Risk-weighted assets: 13.3% versus 13.9% estimated by eight analysts on average.
View all Key Company Metrics for Discover here>>>Shares of Discover have returned -1.4% over the past month versus the Zacks S&P 500 composite's -1.1% 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.