Discover Financial Services Earnings Cheat Sheet: Profit Rises Year Over Year

S&P 500 (NYSE:SPY) component Discover Financial Services (NYSE:DFS) reported net income above Wall Street’s expectations for the fourth 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 Fourth Quarter

Results: 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.

Actual vs. Wall St. Expectations: DFS beat the mean analyst estimate of 89 cents per share.

Quoting Management: “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.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 27 cents in the third quarter, by 37 cents in the second quarter, and by 31 cents in the first quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 75 cents a share to 84 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from $3.58 per to share to $4.02.

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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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)