Earnings Preview: Discover Financial Services Reports Results On Thursday

| About: Discover Financial (DFS)

Discover Financial Services (NYSE:DFS) is due to report earnings before the opening bell on September 22, 2011.

Overview

Discover Financial Services, a bank holding company, offers direct banking and payment services in the United States. It operates in two segments: Direct Banking and Payment Services. The company was founded in 1986 and is based in Riverwoods, Illinois. DFS trades an average of 6.8 million shares per day.

52 Week High: $27.92
52 Week Low: $15.81
Book Value: $13.79
Float Short: 1.80%

On average, 13 analysts are expecting a drop of $-0.19 in earnings per share compared to last quarter's results of $1.09. A beat of $0.9 per share will top the estimated per share earnings. Analyst estimates range between $0.68 and $1.15 per share.

The P/E ratio has been under pressure, as the current trailing twelve months (ttm) P/E ratio is 8.7, while the forward P/E ratio is now 7.2. An upside earnings report may put a lot of wind in the sails.
In the last month, the stock has increased in price 14.77% with a one year change of 65.86%.
Comparing to the S&P 500 price changes, the price performances are 8.27% vs. the S&P 500 from a month ago, and year to date difference is 47.01% vs. the S&P 500 price change.

The bottom line has falling earnings year-over-year of $764.79 million for 2010 vs. $1.28 billion for 2009.

Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
May-11 $ 1.67 B $ 1.74 B $ 69.84 M 4.19%
Feb-11 $ 1.63 B $ 1.73 B $ 99.49 M 6.09%
Nov-10 $ 1.63 B $ 1.60 B $ -38.39 M -2.35%
Aug-10 $ 1.63 B $ 1.71 B $ 80.90 M 4.96%
May-10 $ 1.62 B $ 1.66 B $ 42.28 M 2.61%
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M = millions, B = billions

Differences are rounded. (Some onetime items are often excluded in reported EPS)
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Reported earnings per share compared to the mean estimate. Differences are rounded.

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I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, Google Finance, MSN Money, CNBC, Zacks and Yahoo Finance for most of my data. I use the "confirmed" symbols from earnings.com that I believe to be of most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.