Financial Data and Key Metrics Changes - The company reported net income of $965 million, a 41% increase from the prior year [8] - Net interest margin ended at 11.38%, up 43 basis points year-over-year and 21 basis points sequentially [9] - Total operating expenses increased by $238 million or 16% year-over-year [12] - Total net charge-offs were 4.86%, up 134 basis points from the prior year [13] Business Line Data and Key Metrics Changes - Card receivables increased by 3% year-over-year, while Discover card sales decreased by 3% [9] - Personal loans rose by 9% from the prior year, driven by strong demand for debt consolidation [10] - Student loans decreased by 19% year-over-year due to the first asset sale, with a recognized gain of $70 million [10] Market Data and Key Metrics Changes - Average consumer deposits increased by 11% year-over-year and 1% sequentially [10] - The payment rate declined around 100 basis points from last year but remained stable compared to the prior quarter [9] Company Strategy and Development Direction - The company is focused on driving business results, strengthening risk management, and planning for the merger with Capital One [5] - Significant progress has been made in the sale of the private student loan portfolio, with 55% sold to date [5][10] - The company aims to create valuable jobs and enhance community engagement through its facilities strategy [7] Management's Comments on Operating Environment and Future Outlook - Management noted cautious consumer behavior and credit tightening actions impacting sales, which are expected to persist [9] - The economic outlook assumes year-end 2024 unemployment at 4.4% and GDP growth in the 1% to 3% range [15] - The company revised its 2024 loan growth expectations to low- to mid-single-digits due to higher-than-anticipated payment rates [17] Other Important Information - Discover ranked 2 in customer satisfaction among U.S. credit card issuers for the fifth consecutive year [6] - The company declared a quarterly cash dividend of $0.70 per share of common stock [15] - The SEC is reviewing certain aspects of the company's accounting approach related to card misclassification [16] Summary of Q&A Session Questions and Answers - There was no formal question-and-answer session following the remarks, but the Investor Relations team is available for inquiries [4]

-- | --- | --- | |-----------------------------------|-------| | | | | | | | | | | | | | | | | | | | ©2024 DISCOVER FINANCIAL SERVICES | | Notice The following slides are part of a presentation by Discover Financial Services (the "Company") in connection with reporting quarterly financial results and are intended to be viewed as part of that presentation. No representation is made that the information in these slides is complete. For additional financial, statistical, and business related information, as we ...

Core Insights - Discover (DFS) reported $4.45 billion in revenue for Q3 2024, a year-over-year increase of 10.1% and an EPS of $3.69 compared to $2.59 a year ago, exceeding both revenue and EPS consensus estimates [1] Financial Performance Metrics - Credit Card Loans - Discover Card Sales Volume was $53.38 billion, below the estimated $54.39 billion [2] - Net Interest Margin stood at 11.4%, slightly above the average estimate of 11.3% [2] - Operating Efficiency was reported at 38%, exceeding the average estimate of 36.2% [2] - Net Principal Charge-off Rate was 4.9%, matching the average estimate [2] - Total Discover Card Volume reached $56.59 billion, below the estimated $58.03 billion [2] - Total Payment Services Network Volume was $100.47 billion, slightly above the average estimate of $99.85 billion [2] - Diners Club International Network Volume was $10.39 billion, exceeding the estimated $10.08 billion [2] - Network Partners Volume was $7.51 billion, below the average estimate of $9.59 billion [2] - PULSE Network Volume was $82.57 billion, above the estimated $80.67 billion [2] - Transactions Processed on Discover Network totaled 954 million, below the estimated 990.33 million [2] - Tier 1 Risk Based Capital Ratio was 13.5%, above the average estimate of 13.3% [2] - Total Transactions Processed on Networks was 3.38 billion, matching the estimated figure [2] Stock Performance - Discover shares returned +7% over the past month, outperforming the Zacks S&P 500 composite's +3.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Discover (DFS) came out with quarterly earnings of $3.69 per share, beating the Zacks Consensus Estimate of $3.28 per share. This compares to earnings of $2.59 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.50%. A quarter ago, it was expected that this credit card issuer and lender would post earnings of $3.06 per share when it actually produced earnings of $6.06, delivering a surprise of 98.04%.Over the last four quarters ...

Earnings Estimate Revisions - Discover Financial Services (DFS) is seeing favorable earnings estimate revisions, which is a precursor to an earnings beat [1] - The Most Accurate Estimate for the current quarter is $3.44 per share, compared to the Zacks Consensus Estimate of $3.29 per share, indicating a Zacks Earnings ESP of +4.84% [1] Zacks Earnings ESP and Market Performance - A positive Zacks Earnings ESP has historically been powerful in producing positive earnings surprises and outperforming the market [2] - Stocks with a positive Earnings ESP and a Zacks Rank 3 (Hold) or better show a positive surprise nearly 70% of the time and have returned over 28% on average in annual returns [2] Investment Consideration - Given DFS has a Zacks Rank 3 and a positive Earnings ESP, it may be a stock to consider ahead of earnings [2] - Recent earnings estimate revisions suggest potential positive outcomes for Discover Financial in the upcoming report [2]

Discover Financial Services (DFS) is scheduled to release third-quarter 2024 results on Oct. 16, after the closing bell. The Zacks Consensus Estimate for the quarter’s earnings per share is pegged at $3.29, which indicates an improvement of 27% from the prior-year quarter’s reported number. Higher net interest income and non-interest income, driven by receivable growth and higher PULSE transactions, are expected to have benefited its quarterly performance, partially offset by elevated compensation expenses. ...

The upcoming report from Discover (DFS) is expected to reveal quarterly earnings of $3.29 per share, indicating an increase of 27% compared to the year-ago period. Analysts forecast revenues of $4.36 billion, representing an increase of 7.8% year over year.Over the last 30 days, there has been an upward revision of 3.7% 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 th ...

Discover (DFS) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on October 16, 2024, might help the stock move higher if these key numbers are better than e ...

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Discover Financial Services (NYSE: DFS ) is a well-known online banking and credit card company. After announcing in February plans to enter an all-stock merger with Capital One ( COF ), those plans have been derailed by resistance from federalMy articles are written with a mind to owning a stock for years, not trying to predict price movements in a few months. I don't do target prices; I do valuations.I first entered investing in 2020 as an individual value investor, keen to understand the fundamentals of ...