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Discover Financial Services (DFS)

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  • Dec. 15, 2011, 3:43 PM
    Discover (DFS -3.2%) sells off despite beating earnings and a dividend boost. Spooking investors are worries the company has seen the best of credit improvements. Discover released just $68M in reserves into the profit column in FQ4 against $359M in FQ3. "It's going to be harder for card stocks to outperform over the next 6-12 months," says Donald Fandetti from Citigroup. DFS +24.5% YTD.
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  • Dec. 15, 2011, 8:39 AM
    Discover Financial Services (DFS): FQ4 EPS of $0.95 beats by $0.03. Revenue of $1.80B (+13.2% Y/Y) in-line. Shares +0.8% premarket. (PR)
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  • Dec. 15, 2011, 12:05 AM
    Notable earnings before Thursday's open: DFS, FDX, PIR, RAD
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  • Dec. 14, 2011, 12:07 PM
    Discover Financial (DFS +0.4%) clings to positive territory after Credit Suisse ups estimates ahead of its Q4 due to lower charge-off rates. In September and October the company's trust net loss rate improved 34 bps to 3.26%. To reflect the improvement, the firm raises Q4 EPS estimates to $1.00 from $0.84, and FY11 EPS estimates to $4.10 from $3.95. Separately, CLSA recommends owning Discover going into tomorrows earnings, saying the company will beat expectations.
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  • Nov. 22, 2011, 4:34 PM
    The Fed launches new bank stress tests in which lenders will be forced to model a severe eurozone recession - a 6.9% decline in real GDP - and a skying domestic unemployment rate. In addition, the 6 largest U.S. banks will need to estimate losses "stemming from a hypothetical global market shock," similar to that of late autumn 2008.
  • Oct. 13, 2011, 2:52 PM
    Banks that issue a lot of credit cards are feeling pain, after JPMorgan Chase (JPM -4.9%) CFO Doug Braunstein warned on the company’s conference call that the decline in net charge-offs this quarter should continue in Q4, "but after that you shouldn’t expect much additional improvement." COF -3.3%, DFS -4.2%, ADS -6.2%.
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  • Oct. 11, 2011, 3:43 PM
    Banks gave 5.4M subprime borrowers credit cards in H1, a 64% Y/Y increase, as lenders seek growth where they can find it. It's just a blip compared to the 14.7M cards issued in H1 2007, but the improving performance of recent credit card portfolios are making lenders more comfortable. Data suggest Citigroup (C) is leading the charge.
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  • Oct. 10, 2011, 1:51 PM
    Fitch says U.S. credit card performance improved again with delinquencies and late payments settling near multi-year lows, but warns the trend of improvement may be leveling out. "Credit quality has improved significantly for credit cards...that said, the pace of improvement is showing signs of leveling off and we expect to see stabilizing trends going forward."
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  • Sep. 29, 2011, 7:32 AM
    Discover (DFS), down 4% yesterday in a mysterious swoon, faces an enforcement action from the FDIC over the company's marketing practices. The firm says it believes it has already addressed the issues related to the FDIC complaint, which was filed after the market closed.
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  • Sep. 27, 2011, 3:50 PM
    Discover (DFS -6%) is off sharply on no particular news. The stock has had a nice run, outperforming by a wide berth other credit card issuers as well as the rest of the financial sector. The company blew away earnings estimates late last week as well, so perhaps investors are taking profits.
  • Sep. 22, 2011, 8:39 AM
    Discover Financial Services (DFS): FQ3 EPS of $1.18 beats by $0.23. Revenue of $1.79B (+3% Y/Y) beats by $20M. Credit card delinquency rate reached a low of 2.43%, net charge-off rate declined to 3.85%. Shares -1.3% premarket. (PR)
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  • Sep. 22, 2011, 12:05 AM
    Notable earnings before Thursday's open: DFS, FDX, KMX
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  • Aug. 16, 2011, 1:47 PM
    Delinquencies on credit cards are at their lowest level in 17 years despite their increased use, TransUnion says, as "consumers are using credit cards more responsibly." But the question is whether this is more than a temporary pause in the spend-less, save-more trend; the answer could have big consequences for the economy.
  • Jul. 12, 2011, 2:43 PM
    Banks find a new revenue stream by selling consumer shopping habits - actual data, not just general trends and averages - to retailers in a bid to get ahead of Groupon and LivingSocial in the multi-billion dollar daily deals industry. Forecasts see $1.7B in annual revenue for card issuers by 2015. Already in the game: WF, C, DFS.
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  • Jun. 28, 2011, 3:29 PM
    U.S. banks are bombarding consumers with some of the most lucrative credit card offers in years, but many are being dangled at affluent people who already have plenty of plastic. Some 1.4B offers for new cards were mailed in Q1, a 69% jump from 826M Y/Y, with nearly two-thirds going to households with annual earnings of more than $75,000.
  • Jun. 28, 2011, 11:15 AM
    Mastercard (MA +2.3%) appears unfazed by an earlier attack on its website by Wikileaks activists, trading higher after Jefferies initiates it and Visa (V +1.8%) with buy ratings.
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Company Description
Discover Financial Services is a direct banking and payment services company. The Company offers credit card loans, private student loans, personal loans, home equity loans and deposit products.
Sector: Financial
Industry: Credit Services
Country: United States