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Discover (DFS) Reports Q3 Earnings: What Key Metrics Have to Say
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Discover (DFS - Free Report) reported $4.45 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 10.1%. EPS of $3.69 for the same period compares to $2.59 a year ago.
The reported revenue represents a surprise of +2.17% over the Zacks Consensus Estimate of $4.36 billion. With the consensus EPS estimate being $3.28, the EPS surprise was +12.50%.
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.
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:
Credit Card Loans - Discover Card Sales Volume: $53.38 billion versus $54.39 billion estimated by 15 analysts on average.
Net Interest Margin: 11.4% versus the 14-analyst average estimate of 11.3%.
Operating Efficiency: 38% versus the 14-analyst average estimate of 36.2%.
Net Principal Charge-off Rate: 4.9% compared to the 4.9% average estimate based on 14 analysts.
Credit Card Loans - Total Discover Card Volume: $56.59 billion versus the 10-analyst average estimate of $58.03 billion.
Network Volume - Total Payment Services: $100.47 billion versus the 10-analyst average estimate of $99.85 billion.
Network Volume - Diners Club International: $10.39 billion versus $10.08 billion estimated by nine analysts on average.
Network Volume - Network Partners: $7.51 billion versus the nine-analyst average estimate of $9.59 billion.
Network Volume - PULSE Network: $82.57 billion versus $80.67 billion estimated by nine analysts on average.
Transactions Processed on Networks - Discover Network: $954 million versus $990.33 million estimated by nine analysts on average.
Tier 1 Risk Based Capital Ratio: 13.5% versus the nine-analyst average estimate of 13.3%.
Transactions Processed on Networks - Total: $3.38 billion versus $3.38 billion estimated by nine analysts on average.
Shares of Discover have returned +7% over the past month versus the Zacks S&P 500 composite's +3.5% 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 Q3 Earnings: What Key Metrics Have to Say
Discover (DFS - Free Report) reported $4.45 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 10.1%. EPS of $3.69 for the same period compares to $2.59 a year ago.
The reported revenue represents a surprise of +2.17% over the Zacks Consensus Estimate of $4.36 billion. With the consensus EPS estimate being $3.28, the EPS surprise was +12.50%.
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.
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:
- Credit Card Loans - Discover Card Sales Volume: $53.38 billion versus $54.39 billion estimated by 15 analysts on average.
- Net Interest Margin: 11.4% versus the 14-analyst average estimate of 11.3%.
- Operating Efficiency: 38% versus the 14-analyst average estimate of 36.2%.
- Net Principal Charge-off Rate: 4.9% compared to the 4.9% average estimate based on 14 analysts.
- Credit Card Loans - Total Discover Card Volume: $56.59 billion versus the 10-analyst average estimate of $58.03 billion.
- Network Volume - Total Payment Services: $100.47 billion versus the 10-analyst average estimate of $99.85 billion.
- Network Volume - Diners Club International: $10.39 billion versus $10.08 billion estimated by nine analysts on average.
- Network Volume - Network Partners: $7.51 billion versus the nine-analyst average estimate of $9.59 billion.
- Network Volume - PULSE Network: $82.57 billion versus $80.67 billion estimated by nine analysts on average.
- Transactions Processed on Networks - Discover Network: $954 million versus $990.33 million estimated by nine analysts on average.
- Tier 1 Risk Based Capital Ratio: 13.5% versus the nine-analyst average estimate of 13.3%.
- Transactions Processed on Networks - Total: $3.38 billion versus $3.38 billion estimated by nine analysts on average.
View all Key Company Metrics for Discover here>>>Shares of Discover have returned +7% over the past month versus the Zacks S&P 500 composite's +3.5% 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.