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Here's What Key Metrics Tell Us About Discover (DFS) Q4 Earnings
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For the quarter ended December 2024, Discover (DFS - Free Report) reported revenue of $4.76 billion, up 13.4% over the same period last year. EPS came in at $5.11, compared to $1.54 in the year-ago quarter.
The reported revenue represents a surprise of +8.40% over the Zacks Consensus Estimate of $4.39 billion. With the consensus EPS estimate being $3.17, the EPS surprise was +61.20%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
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:
Net Interest Margin: 12% versus 11.4% estimated by 15 analysts on average.
Operating Efficiency: 39% versus 38.7% estimated by 14 analysts on average.
Net Principal Charge-off Rate: 4.2% compared to the 5% average estimate based on 14 analysts.
Credit Card Loans - Discover Card Sales Volume: $55.25 billion versus the 14-analyst average estimate of $56.36 billion.
Credit Card Loans - Total Discover Card Volume: $58.31 billion versus the 10-analyst average estimate of $59.67 billion.
Network Volume - Total Payment Services: $102.42 billion versus $105.64 billion estimated by 10 analysts on average.
Network Volume - Diners Club International: $11.44 billion versus $10.86 billion estimated by nine analysts on average.
Network Volume - Network Partners: $6.08 billion compared to the $8.28 billion average estimate based on nine analysts.
Network Volume - PULSE Network: $84.90 billion versus $86.86 billion estimated by nine analysts on average.
Average Balances - Total Interest Earning Assets: $150.89 billion compared to the $151.88 billion average estimate based on nine analysts.
Tier 1 Risk Based Capital Ratio: 15% versus 14.3% estimated by nine analysts on average.
Transactions Processed on Networks - Total: $3.44 billion versus the nine-analyst average estimate of $3.67 billion.
Shares of Discover have returned +7.2% over the past month versus the Zacks S&P 500 composite's +2.1% 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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Here's What Key Metrics Tell Us About Discover (DFS) Q4 Earnings
For the quarter ended December 2024, Discover (DFS - Free Report) reported revenue of $4.76 billion, up 13.4% over the same period last year. EPS came in at $5.11, compared to $1.54 in the year-ago quarter.
The reported revenue represents a surprise of +8.40% over the Zacks Consensus Estimate of $4.39 billion. With the consensus EPS estimate being $3.17, the EPS surprise was +61.20%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
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:
- Net Interest Margin: 12% versus 11.4% estimated by 15 analysts on average.
- Operating Efficiency: 39% versus 38.7% estimated by 14 analysts on average.
- Net Principal Charge-off Rate: 4.2% compared to the 5% average estimate based on 14 analysts.
- Credit Card Loans - Discover Card Sales Volume: $55.25 billion versus the 14-analyst average estimate of $56.36 billion.
- Credit Card Loans - Total Discover Card Volume: $58.31 billion versus the 10-analyst average estimate of $59.67 billion.
- Network Volume - Total Payment Services: $102.42 billion versus $105.64 billion estimated by 10 analysts on average.
- Network Volume - Diners Club International: $11.44 billion versus $10.86 billion estimated by nine analysts on average.
- Network Volume - Network Partners: $6.08 billion compared to the $8.28 billion average estimate based on nine analysts.
- Network Volume - PULSE Network: $84.90 billion versus $86.86 billion estimated by nine analysts on average.
- Average Balances - Total Interest Earning Assets: $150.89 billion compared to the $151.88 billion average estimate based on nine analysts.
- Tier 1 Risk Based Capital Ratio: 15% versus 14.3% estimated by nine analysts on average.
- Transactions Processed on Networks - Total: $3.44 billion versus the nine-analyst average estimate of $3.67 billion.
View all Key Company Metrics for Discover here>>>Shares of Discover have returned +7.2% over the past month versus the Zacks S&P 500 composite's +2.1% 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.