RIVERWOODS, ILLINOIS - FEBRUARY 19: A sign sits at the entrance of the Discover Financial Services ... [+] corporate headquarters campus on February 19, 2024 in Riverwoods, Illinois. Capital One plans to buy Discover Financial Services, a deal that would merge two of the nation's largest credit-card companies. (Photo by Scott Olson/Getty Images)Getty ImagesDiscover Financial (NYSE: DFS) is scheduled to report its fiscal Q1 2024 results on Wednesday, April 17, 2023 (after market close). We expect Discover Fi ...

Core Viewpoint - Discover Financial Services (DFS) is expected to report a decline in earnings per share for the first quarter of 2024, with a consensus estimate of $2.96, reflecting a 17.3% decrease from the previous year, while revenues are projected to increase by 8.2% to $4.1 billion [2]. Q4 Earnings Performance - In the previous quarter, DFS reported adjusted earnings of $1.54 per share, missing the consensus estimate by 38.4%, primarily due to rising operating costs and weak contributions from the Digital Banking segment [3]. Q1 Factors to Note - The anticipated growth in net interest income, expected to rise by 8% from $3.1 billion in the prior year, is a key driver for revenue performance, supported by strong asset expansion and favorable interest rates [4]. - Receivables growth is expected to be driven by robust sales, moderated payment rates, and improved new account growth, alongside cautious underwriting and marketing strategies [4]. Payment Services Performance - Increased debit transaction volume and higher spending in travel and entertainment are expected to positively impact the Payment Services unit, particularly PULSE and Diners Club volumes [5]. Non-Interest Income Growth - Non-interest income is projected to grow by 9.3% year-over-year, driven by improved loan fee income and higher net discount and interchange revenues, although high reward costs may partially offset this growth [5]. Net Interest Margin and Costs - The net interest margin is estimated at 10.82%, down from 11.34% a year ago, with profits likely impacted by rising costs and high provisions for bad loans [6]. - Operating expenses are expected to increase by over 17% year-over-year, driven by higher marketing costs and employee compensation, leading to a potential decline in the bottom line [7]. Earnings Whispers - The Earnings ESP for DFS is -1.67%, indicating a lower likelihood of an earnings beat, with the most accurate estimate at $2.91 per share, below the consensus [8].

Discover Financial Services (DFS) recently struck a strategic partnership with Google Cloud to bring generative AI or gen AI technology to its customer care centers. The technology is expected to improve agent productivity, and enable delivering faster, personalized and efficient resolutions, enhancing customer experience.Per the deal, DFS will leverage Vertex AI, Google Cloud's AI platform, to equip its around 10,000 contact center agents with gen AI-driven tools. This will help the agents to analyze compl ...

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Discover (DFS) despite higher revenues, with the upcoming earnings report on April 17, 2024, being crucial for stock price movement based on actual results compared to estimates [1] Group 1: Earnings Estimates - Discover is expected to report quarterly earnings of $2.96 per share, reflecting a year-over-year decrease of 17.3% [2] - Revenue projections stand at $4.06 billion, indicating an increase of 8.1% from the previous year [2] - The consensus EPS estimate has been revised 1.55% higher in the last 30 days, suggesting a reassessment by analysts [2] Group 2: Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Discover is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.35%, which suggests a bearish outlook [5] - The stock currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [6] Group 3: Historical Performance - In the last reported quarter, Discover was expected to post earnings of $2.50 per share but only achieved $1.54, resulting in a surprise of -38.40% [7] - The company has not surpassed consensus EPS estimates in any of the last four quarters, indicating a trend of underperformance [7] Group 4: Market Reactions - An earnings beat or miss alone may not dictate stock price movements, as other factors can influence investor sentiment [8] - Discover does not currently appear to be a strong candidate for an earnings beat, suggesting that investors should consider additional factors before making investment decisions [8]

Nearly 10,000 customer care agents will be empowered with AI-driven capabilities, leading to faster resolution times and better customer experience RIVERWOODS, Ill., April 9, 2024 /PRNewswire/ -- Cloud Next '24, LAS VEGAS -- Discover today announced a strategic collaboration with Google Cloud to introduce generative AI (gen AI) technology into its customer care centers. This collaboration aims to enhance the customer and agent experience, and improve agent productivity, offering faster, more personalized, a ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) Commission File Number 001-33378 DISCOVER FINANCIAL SERVICES (Exact name of registrant as specified in its charter) Delaware (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- | --- | --- | | Common Stock, par value $0.01 per share | DFS | New York Stock Exchange ...

Discover Financial Services Corp. (NYSE: DFS) NEW YORK, Feb. 20, 2024 /PRNewswire/ -- Moore Law PLLC, a law firm focusing on securities litigation located on Wall Street in downtown New York City, is investigating potential claims concerning whether the following proposed mergers are fair to shareholders. Moore Law may seek increased consideration, additional disclosures, or other relief on behalf of the shareholders of these companies. If you remain a Discover shareholder and have concerns about the fair ...

Group 1: Acquisition Details - Discover Financial Services (DFS) will be acquired by Capital One Financial Corporation (COF) in an all-stock deal valued at $35.3 billion, with COF offering 1.0192 shares for each DFS share, representing a 26.6% premium on DFS's closing price of $110.49 on February 16, 2024 [1] - The transaction is expected to close by late 2024 or early 2025, pending regulatory and shareholder approvals [1] Group 2: Financial Performance and Synergies - Discover Financial's adjusted earnings fell 59% year over year in Q4 2023, indicating struggles in generating positive results [2] - The merger is anticipated to create expense synergies of $1.5 billion by 2027, with additional network synergies estimated at $1.2 billion [3] - The combined entity is expected to enhance product offerings through complementary credit card businesses and improve competitiveness in the banking sector [3] Group 3: Market Performance - Discover Financial's shares have increased by 28.6% over the past three months, slightly outperforming the industry average rise of 28% [4]

Capital One Financial (COF -0.95%) has a deal in place to acquire Discover Financial Services (DFS 12.75%) at a significant premium. Discover shareholders are celebrating, as the market sent shares up by 11% as of 10 a.m. ET.A new leader in credit cardsCapital One and Discover are two giants of the banking industry, but they have taken very different approaches to the lending business. Capital One began its life catering to people who have traditionally had trouble securing credit, but as it has grown, it h ...

NEW YORK, Feb. 19, 2024 /PRNewswire/ -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating potential claims related to the below-listed proposed mergers.  Kuehn Law may seek additional disclosures or other relief on behalf of the shareholders of these companies.  Kuehn Law is investigating whether the Boards of the below companies 1) acted to maximize shareholder value, 2) failed to disclose material information, and 3) conducted a fair process:  Discover Financial Services (NYSE: DFS) cl ...