Discover Financial Services Earnings: Beats Estimates, Stock Up 1.8%

S&P 500 (NYSE:SPY) component Discover Financial Services (NYSE:DFS) reported net income above Wall Street’s expectations for the third quarter. Discover Financial Services is a credit card issuer in the United States and an electronic payment services company.

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Discover Financial Services Earnings Cheat Sheet for the Third Quarter

Results: Net income for Discover Financial Services rose to $649 million ($1.18 per share) vs. $260.6 million (47 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Actual vs. Wall St. Expectations: DFS beat the mean analyst estimate of 91 cents per share.

Quoting Management: “We achieved record results again this quarter as a result of further improvements in credit performance and record sales volume,” said David Nelms, chairman and chief executive officer of Discover. “In addition, we are very pleased to report the reemergence of year-over-year growth in Discover card receivables and continued strong growth in our personal loan and private student loan businesses. Our strong capital position has allowed us to continue to invest in growth. We also repurchased more than eight million shares in the quarter.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 37 cents in the second quarter, by 31 cents in the first quarter, and by 22 cents in the fourth quarter of the last fiscal year.

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).

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(Source: Xignite Financials)