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Discover (DFS) Reports Q2 Earnings: What Key Metrics Have to Say
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For the quarter ended June 2024, Discover (DFS - Free Report) reported revenue of $4.54 billion, up 17% over the same period last year. EPS came in at $6.06, compared to $3.54 in the year-ago quarter.
The reported revenue represents a surprise of +9.09% over the Zacks Consensus Estimate of $4.16 billion. With the consensus EPS estimate being $3.06, the EPS surprise was +98.04%.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Discover performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating Efficiency Ratio: 38.1% compared to the 36.9% average estimate based on 14 analysts.
Credit Card Volume - Discover Card Sales: $53.48 billion versus $55.30 billion estimated by 14 analysts on average.
Net charge-offs as a percentage of total loans: 4.8% versus 5% estimated by 14 analysts on average.
Net interest margin: 11.2% versus the 12-analyst average estimate of 10.9%.
Credit Card Volume - Discover Card: $56.44 billion versus the nine-analyst average estimate of $59.39 billion.
Average Balances - Total Interest Earning Assets: $151.77 billion versus $152.47 billion estimated by nine analysts on average.
Total Risk Based Capital Ratio: 14.3% versus 13.2% estimated by eight analysts on average.
Network Volume - Total Payment Services: $99.28 billion versus $98.08 billion estimated by eight analysts on average.
Transactions Processed on Networks - Discover Network: $936 million versus the eight-analyst average estimate of $984.96 million.
Tier 1 Risk Based Capital Ratio: 12.7% versus the eight-analyst average estimate of 11.9%.
Transactions Processed on Networks - Total: $3.35 billion compared to the $3.07 billion average estimate based on eight analysts.
Network Volume - Network Partners: $8.11 billion versus $10.60 billion estimated by seven analysts on average.
Shares of Discover have returned +11.7% over the past month versus the Zacks S&P 500 composite's +4.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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Discover (DFS) Reports Q2 Earnings: What Key Metrics Have to Say
For the quarter ended June 2024, Discover (DFS - Free Report) reported revenue of $4.54 billion, up 17% over the same period last year. EPS came in at $6.06, compared to $3.54 in the year-ago quarter.
The reported revenue represents a surprise of +9.09% over the Zacks Consensus Estimate of $4.16 billion. With the consensus EPS estimate being $3.06, the EPS surprise was +98.04%.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Discover performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Operating Efficiency Ratio: 38.1% compared to the 36.9% average estimate based on 14 analysts.
- Credit Card Volume - Discover Card Sales: $53.48 billion versus $55.30 billion estimated by 14 analysts on average.
- Net charge-offs as a percentage of total loans: 4.8% versus 5% estimated by 14 analysts on average.
- Net interest margin: 11.2% versus the 12-analyst average estimate of 10.9%.
- Credit Card Volume - Discover Card: $56.44 billion versus the nine-analyst average estimate of $59.39 billion.
- Average Balances - Total Interest Earning Assets: $151.77 billion versus $152.47 billion estimated by nine analysts on average.
- Total Risk Based Capital Ratio: 14.3% versus 13.2% estimated by eight analysts on average.
- Network Volume - Total Payment Services: $99.28 billion versus $98.08 billion estimated by eight analysts on average.
- Transactions Processed on Networks - Discover Network: $936 million versus the eight-analyst average estimate of $984.96 million.
- Tier 1 Risk Based Capital Ratio: 12.7% versus the eight-analyst average estimate of 11.9%.
- Transactions Processed on Networks - Total: $3.35 billion compared to the $3.07 billion average estimate based on eight analysts.
- Network Volume - Network Partners: $8.11 billion versus $10.60 billion estimated by seven analysts on average.
View all Key Company Metrics for Discover here>>>Shares of Discover have returned +11.7% over the past month versus the Zacks S&P 500 composite's +4.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.