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Compared to Estimates, Discover (DFS) Q3 Earnings: A Look at Key Metrics
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Discover (DFS - Free Report) reported $4.04 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 16.2%. EPS of $2.59 for the same period compares to $3.54 a year ago.
The reported revenue represents a surprise of +2.53% over the Zacks Consensus Estimate of $3.94 billion. With the consensus EPS estimate being $3.15, the EPS surprise was -17.78%.
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: 3.5% compared to the 3.7% average estimate based on 15 analysts.
Net interest margin: 11% compared to the 10.9% average estimate based on 14 analysts.
Operating Efficiency Ratio: 36% compared to the 38% average estimate based on 12 analysts.
Credit Card Volume - Discover Card: $58.97 billion versus the 10-analyst average estimate of $60.12 billion.
Transactions Processed on Networks- Total: $2.98 billion versus $2.71 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +17.4% change.
Network Volume- PULSE Network: $72.15 billion versus $68.36 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +13.7% change.
Network Volume- Total Payment Services: $91.77 billion versus $89.60 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change.
Transactions Processed on Networks- PULSE Network: $2.01 billion compared to the $1.74 billion average estimate based on six analysts.
Transactions Processed on Networks- Discover Network: $964 million compared to the $942.17 million average estimate based on six analysts.
Network Volume- Total Volume: $149 billion versus $149.08 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.9% change.
Digital Banking- Net interest income: $3.32 billion versus $3.27 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +16.9% change.
Network Volume- Network Partners: $9.90 billion versus the five-analyst average estimate of $11.41 billion. The reported number represents a year-over-year change of -16.8%.
Shares of Discover have returned +4.7% over the past month versus the Zacks S&P 500 composite's -1.6% 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.
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Compared to Estimates, Discover (DFS) Q3 Earnings: A Look at Key Metrics
Discover (DFS - Free Report) reported $4.04 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 16.2%. EPS of $2.59 for the same period compares to $3.54 a year ago.
The reported revenue represents a surprise of +2.53% over the Zacks Consensus Estimate of $3.94 billion. With the consensus EPS estimate being $3.15, the EPS surprise was -17.78%.
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: 3.5% compared to the 3.7% average estimate based on 15 analysts.
- Net interest margin: 11% compared to the 10.9% average estimate based on 14 analysts.
- Operating Efficiency Ratio: 36% compared to the 38% average estimate based on 12 analysts.
- Credit Card Volume - Discover Card: $58.97 billion versus the 10-analyst average estimate of $60.12 billion.
- Transactions Processed on Networks- Total: $2.98 billion versus $2.71 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +17.4% change.
- Network Volume- PULSE Network: $72.15 billion versus $68.36 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +13.7% change.
- Network Volume- Total Payment Services: $91.77 billion versus $89.60 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +9.1% change.
- Transactions Processed on Networks- PULSE Network: $2.01 billion compared to the $1.74 billion average estimate based on six analysts.
- Transactions Processed on Networks- Discover Network: $964 million compared to the $942.17 million average estimate based on six analysts.
- Network Volume- Total Volume: $149 billion versus $149.08 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.9% change.
- Digital Banking- Net interest income: $3.32 billion versus $3.27 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +16.9% change.
- Network Volume- Network Partners: $9.90 billion versus the five-analyst average estimate of $11.41 billion. The reported number represents a year-over-year change of -16.8%.
View all Key Company Metrics for Discover here>>>Shares of Discover have returned +4.7% over the past month versus the Zacks S&P 500 composite's -1.6% 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.