We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Discover (DFS) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
Read MoreHide Full Article
For the quarter ended June 2023, Discover (DFS - Free Report) reported revenue of $3.88 billion, up 20.3% over the same period last year. EPS came in at $3.54, compared to $3.96 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $3.87 billion, representing a surprise of +0.13%. The company delivered an EPS surprise of -3.28%, with the consensus EPS estimate being $3.66.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Discover performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net charge-offs as a percentage of total loans: 3.22% versus 3.4% estimated by 15 analysts on average.
Net interest margin: 11.06% versus the 15-analyst average estimate of 11.23%.
Operating Efficiency Ratio: 36.2% versus 36.35% estimated by 13 analysts on average.
Credit Card Volume - Discover Card Sales: $55.23 billion versus $57.60 billion estimated by 10 analysts on average.
Total Non-Interest Income: $701 million versus $674.08 million estimated by 17 analysts on average. Compared to the year-ago quarter, this number represents a +14.2% change.
Net Interest Income: $3.18 billion versus $3.20 billion estimated by 17 analysts on average. Compared to the year-ago quarter, this number represents a +21.7% change.
Discount and interchange revenue: $370 million compared to the $382.82 million average estimate based on 14 analysts. The reported number represents a change of -5.1% year over year.
Protection Products Revenue: $44 million versus $45.73 million estimated by 13 analysts on average. Compared to the year-ago quarter, this number represents a +4.8% change.
Loan fee income: $186 million compared to the $168.37 million average estimate based on 13 analysts. The reported number represents a change of +31% year over year.
Transaction processing revenue: $72 million versus $67.17 million estimated by 12 analysts on average. Compared to the year-ago quarter, this number represents a +18% change.
Transactions Processed on Networks- Total: $2.70 billion versus $2.62 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +10.7% change.
Network Volume- PULSE Network: $69.01 billion compared to the $66.94 billion average estimate based on seven analysts. The reported number represents a change of +9.6% year over year.
Shares of Discover have returned +5.3% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Discover (DFS) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended June 2023, Discover (DFS - Free Report) reported revenue of $3.88 billion, up 20.3% over the same period last year. EPS came in at $3.54, compared to $3.96 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $3.87 billion, representing a surprise of +0.13%. The company delivered an EPS surprise of -3.28%, with the consensus EPS estimate being $3.66.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Discover performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Net charge-offs as a percentage of total loans: 3.22% versus 3.4% estimated by 15 analysts on average.
- Net interest margin: 11.06% versus the 15-analyst average estimate of 11.23%.
- Operating Efficiency Ratio: 36.2% versus 36.35% estimated by 13 analysts on average.
- Credit Card Volume - Discover Card Sales: $55.23 billion versus $57.60 billion estimated by 10 analysts on average.
- Total Non-Interest Income: $701 million versus $674.08 million estimated by 17 analysts on average. Compared to the year-ago quarter, this number represents a +14.2% change.
- Net Interest Income: $3.18 billion versus $3.20 billion estimated by 17 analysts on average. Compared to the year-ago quarter, this number represents a +21.7% change.
- Discount and interchange revenue: $370 million compared to the $382.82 million average estimate based on 14 analysts. The reported number represents a change of -5.1% year over year.
- Protection Products Revenue: $44 million versus $45.73 million estimated by 13 analysts on average. Compared to the year-ago quarter, this number represents a +4.8% change.
- Loan fee income: $186 million compared to the $168.37 million average estimate based on 13 analysts. The reported number represents a change of +31% year over year.
- Transaction processing revenue: $72 million versus $67.17 million estimated by 12 analysts on average. Compared to the year-ago quarter, this number represents a +18% change.
- Transactions Processed on Networks- Total: $2.70 billion versus $2.62 billion estimated by nine analysts on average. Compared to the year-ago quarter, this number represents a +10.7% change.
- Network Volume- PULSE Network: $69.01 billion compared to the $66.94 billion average estimate based on seven analysts. The reported number represents a change of +9.6% year over year.
View all Key Company Metrics for Discover here>>>Shares of Discover have returned +5.3% over the past month versus the Zacks S&P 500 composite's +3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.