Discover Financial Services (DFS) - NYSE
  • Tue, Apr. 19, 4:29 PM
    • Q1 net income of $575M or $1.35 per share vs. $586M and $1.28 one year ago. ROE of 21%. 9M shares bought back during Q1 for $422M.
    • Direct Banking pretax income of $882M about the same as last year, with higher net interest income offset by lower other income (mortgage operation discontinued), higher provisions, and higher expenses. Total loans of $70.3B up 4%. Credit card loans of $55.6B up 4%. Net interest income up 7%. NIM of 9.94% up 24 bps. Delinquency rate of 1.68% up four basis points. Net charge-off rate of 2.34% down 6 bps, up 16 bps from Q4. Provisions of $423M up $35M for the year. Expenses up 3% thanks to higher regulatory and compliance costs.
    • Payment Services pretax income of $32M vs. $27M a year ago.
    • Conference call at 5 ET
    • Previously: Discover Financial Services beats by $0.06, beats on revenue (April 19)
    • DFS flat after hours
    | Tue, Apr. 19, 4:29 PM
  • Tue, Apr. 19, 4:22 PM
    • Discover Financial Services (NYSE:DFS): Q1 EPS of $1.35 beats by $0.06.
    • Revenue of $2.22B (+2.3% Y/Y) beats by $50M.
    • Press Release
    | Tue, Apr. 19, 4:22 PM | 1 Comment
  • Mon, Apr. 18, 5:35 PM
    | Mon, Apr. 18, 5:35 PM | 4 Comments
  • Thu, Apr. 14, 5:47 PM
    • Discover Financial Services (NYSE:DFS) declares $0.28/share quarterly dividend, in line with previous.
    • Forward yield 2.14%
    • Payable May 31; for shareholders of record May 13; ex-div May 11.
    | Thu, Apr. 14, 5:47 PM | 3 Comments
  • Fri, Apr. 8, 8:04 AM
    • The U.S. consumer will be more resilient than feared, says the bank, so credit card stocks - down 8% YTD vs. a flat S&P 500, and now trading at about a 9x P/E level - make a compelling risk/reward play.
    • Top picks: Discover (NYSE:DFS) and Synchrony Financial (NYSE:SYF). For DFS, investors are underestimating the company's ability to accelerate growth. For SYF, investors are too focused on credit concerns and weak U.S. retail sales. SYF, says Deutsche, has several advantages vs. peers in those areas.
    • Already a Buy at Deutsche, Ally Financial (NYSE:ALLY) is due for a bounce, with concern over the TradeKing purchase overblown.
    • American Express (NYSE:AXP) is still a Buy as the earnings growth outlook is so low now that the company can begin to beat estimates.
    • Capital One (NYSE:COF) and Santander Consumer (NYSE:SC) are Holds.
    • Now read: Synchrony Is Poised For Price Appreciation (March 16)
    | Fri, Apr. 8, 8:04 AM | 1 Comment
  • Thu, Feb. 11, 10:44 AM
    • The weaker U.S. economy and higher market volatility will continue to weigh on financial services names, says analyst Ken Bruce, downgrading Visa (V -3.1%), MasterCard (MC -3.7%), Capital One (COF -3.8%), and Discover Financial (DFS -4.7%) to Neutral from Buy. "The combination drives poor earnings visibility and likely constrained valuation, which we think can’t be ignored."
    • He maintains Buy ratings, however, on Synchrony Financial (SYF -3.4%), Ally Financial (ALLY -4.4%), and OneMain Holdings (OMF -8.5%), calling each of the three oversold after major declines this year.
    | Thu, Feb. 11, 10:44 AM | 29 Comments
  • Thu, Jan. 28, 10:20 AM
    • Much of last night's earnings miss was thanks to higher than expected loan loss provisions, says analyst John Pancari. Though management took note of a still relatively benign credit environment, it expects provisions to closely track loan growth, and sees this year's net charge-offs to be slightly higher than 2015.
    • Though the Q4 reserve build was a surprise, says Pancari, the bullish thesis remains intact - the company's returns are comfortably above peers with a generally lower risk profile and an attractive 8.7x P/E valuation.
    • Discover (DFS -7.1%) remains a Buy with $57 price target.
    • Previously: Discover lower after earnings miss (Jan. 27)
    • Previously: Discover Financial Services misses by $0.16, misses on revenue (Jan. 27)
    | Thu, Jan. 28, 10:20 AM
  • Wed, Jan. 27, 4:30 PM
    • Q4 net income of $500M or $1.14 per share vs. $404M and $0.87 one year ago.
    • Direct Banking pretax income of $767M up 19% Y/Y, but fell after excluding last year's one-time items. Total loans of $72.4B up 3.5%. Credit card loans of $57.9B up 3.1%. Personal loans up 9.6%, Private student loans up 3%. Net interest income up 4%, with NIM of 9.75% down two basis points. Delinquency rate of 1.72% down one basis points from a year ago, up seven basis points from last quarter. Loan loss provision of $486M up $32M. Expenses up 3% Y/Y thanks to regulatory and compliance costs.
    • Payment Services pretax income of $21M up sharply from last year which included a $21M charge. Transaction dollar volume of $45.9B down 10%. PULSE transaction dollar volume fell 14% thanks to the loss of volume from a large debit issuer.
    • 8M shares bought back during quarter for $435M. Float fell by 1.8%.
    • Conference call at 5 ET
    • Previously: Discover Financial Services misses by $0.16, misses on revenue (Jan. 27)
    • DFS -2.9% after hours
    | Wed, Jan. 27, 4:30 PM | 7 Comments
  • Wed, Jan. 27, 4:18 PM
    • Discover Financial Services (NYSE:DFS): Q4 EPS of $1.14 misses by $0.16.
    • Revenue of $2.21B (+8.3% Y/Y) misses by $10M.
    | Wed, Jan. 27, 4:18 PM | 3 Comments
  • Tue, Jan. 26, 5:35 PM
  • Thu, Jan. 14, 5:57 PM
    • Discover Financial Services (NYSE:DFS) declares $0.28/share quarterly dividend, in line with previous.
    • Forward yield 2.23%
    • Payable Feb. 18; for shareholders of record Feb. 4; ex-div Feb. 2.
    | Thu, Jan. 14, 5:57 PM
  • Thu, Jan. 14, 10:36 AM
    • Discover (NYSE:DFS) is lower by 8.2% year-to-date, but also by 20% year-over-year. JPMorgan downgrades to Neutral from Overweight, and cuts the price target to $56 from $60 (current price is $49.31).
    • The move is notable considering two upgrades for Discover earlier this week, along with another sell-sider launching coverage on the company with a Buy recommendation.
    • DFS is flat in today's session.
    | Thu, Jan. 14, 10:36 AM | 1 Comment
  • Wed, Jan. 13, 10:12 AM
    • Positive overall on the sector for 2016 thanks to stable loan growth, benign credit trends, and benefits from rising rates, Goldman's Ryan Nash throws in the towel on a Buy call for American Express (AXP -1.1%).
    • His team's top pick in the space is Synchrony Financial (SYF -0.4%), which is added to the bank's Americas Conviction Buy list. The next favored name is Discover (DFS).
    • Previously: Discover, Synchrony are favorites as DA Davidson launches card issuer coverage (Jan. 13)
    | Wed, Jan. 13, 10:12 AM
  • Wed, Jan. 13, 8:12 AM
    • The leading private label credit card issuer in the country, Synchrony FInancial (NYSE:SYF) has seen a good deal of technical pressure on its stock thanks to the GE exchange offer. This leaves the shares at their lowest forward P/E multiple over the past year. Putting a 13x multiple on expected 2016 EPS brings a price target of $37 vs. last night's $28.90 close.
    • It's steady growth at a good price for Discover Financial (NYSE:DFS), says the team, which rates that stock a Buy with $63 price target (vs. $51 close yesterday). That price would be 11x estimated 2016 EPS.
    • Capital One (NYSE:COF) and American Express (NYSE:AXP) are rated Neutral.
    | Wed, Jan. 13, 8:12 AM | 5 Comments
  • Thu, Jan. 7, 10:34 AM
    • "We’re more positive on the top-line growth story, as expectations have come down and we found 10 potential growth catalysts," says analyst David Ho, upgrading Discover (DFS +0.1%) to Buy with $61 price target. Among those are the lagged benefit from last year's growth initiatives, prime segment expansion, and line increases.
    • He also sees credit concerns as less of a headwind vs. peers. At just 8.9x 2016 estimated earnings, Discover is due for a re-rating.
    • The stock is up only marginally on the session, but outperforming peers by 100 basis points or more.
    • See also: Deutsche downgrades Capital One (Jan. 7)
    | Thu, Jan. 7, 10:34 AM | 1 Comment
  • Dec. 16, 2015, 11:11 AM
    • A near-20% decline year-to-date means the share price already reflects expected headwinds and higher costs, says analyst Stephen Biggar, upgrading Discover Financial (DFS +0.3%) to Buy with $60 price target.
    • Among those headwinds are promotional rewards costs, and although they're rising, Biggar is encouraged by healthy new account growth thanks to the success of double rewards and Apple Pay. He expects the company will be able to achieve 3-5% growth in card receivables next year.
    • A large "green field" for the company is international expansion, says Biggar, noting Discover's domestic card portfolio still accounts for 80% of average earning assets.
    | Dec. 16, 2015, 11:11 AM | 1 Comment
Company Description
Discover Financial Services is a direct banking and payment services company. It operates through its subsidiaries, Discover Bank and Discover Home Loans, Inc. The company operates through two segments: Direct Banking and Payment Services. The Direct Banking segment includes consumer banking and... More
Sector: Financial
Industry: Credit Services
Country: United States