2 Stocks Attracting Trading Interest After Earnings Reports

Discover Financial Services (NYSE:DFS) reported net income above Wall Street’s expectations for the fourth quarter. Net income for Discover Financial Services rose to $513 million (95 cents per share) vs. $349.6 million (64 cents per share) in the same quarter a year earlier. This marks a rise of 46.7% from the year earlier quarter. DFS beat the mean analyst estimate of 89 cents per share.

“We are pleased to report another quarter of very strong performance as we generated organic growth in all loan products, had continued improvement in credit and demonstrated solid expense control,” said David Nelms, chairman and chief executive officer of Discover. “Our fourth quarter results, together with our already strong capital levels, allowed us to increase our dividend and execute on our share repurchase program.”

Competitors to Watch: American Express Company (NYSE:AXP), Capital One Financial Corp. (NYSE:COF), Visa Inc. (NYSE:V), SLM Corporation (NYSE:SLM), MasterCard Incorporated (NYSE:MA), Citigroup Inc. (NYSE:C), Bank of America (NYSE:BAC), J.P. Morgan (NYSE:JPM), Nelnet, Inc. (NYSE:NNI), CompuCredit Holdings Corp (NASDAQ:CCRT), and The Student Loan Corp. (NYSE:STU).

Quiksilver Inc. (NYSE:ZQK) climbed to a profit in the fourth quarter and beat Wall Street’s expectations in the process. Reported a profit of $67.9 million (38 cents per diluted share) in the quarter. Quiksilver Inc. had a net loss of $22.1 million or a loss 14 cents per share in the year earlier quarter. Revenue rose 10.1% to $545.2 million from the year earlier quarter. ZQK beat the mean analyst estimate of 7 cents per share. It beat the average revenue estimate of $527.6 million.

Robert B. McKnight, Jr., Chairman of the Board, Chief Executive Officer and President of Quiksilver, Inc., commented, “We’re pleased to report another quarter of solid financial results and we exit 2011 in great shape to deliver improved performance in 2012 in line with our long-term plans. We made investments in fiscal 2011 to deliver better products from each of our brands, but we are most encouraged by the performance of our Roxy brand, which continues to gain traction in the marketplace and whose revenue performance compared to prior periods has improved steadily in each of the past five quarters. Additionally, despite particularly challenging consumer environments in parts of Europe and Australasia, we continue to see solid growth in our emerging and developing markets around the world.”

Competitors to Watch: Delta Apparel, Inc. (AMEX:DLA), Oxford Industries, Inc. (NYSE:OXM), Zuoan Fashion Ltd (NYSE:ZA), Volcom, Inc. (NASDAQ:VLCM), Superior Uniform Group, Inc. (NASDAQ:SGC), Perry Ellis Intl., Inc. (NASDAQ:PERY), American Apparel Inc. (AMEX:APP), Cherokee Inc. (NASDAQ:CHKE), Phillips-Van Heusen Corp. (NYSE:PVH), and Iconix Brand Group, Inc. (NASDAQ:ICON).

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