Discover Financial Services Earnings Preview: Get Ahead of the Analysts

Discover Financial Services (NYSE:DFS) will report earnings after markets close on Tuesday, July 23rd. Discover Financial Services is a credit card issuer and electronic payment services company. The Company issues credit cards and offers student and personal loans, as well as savings products such as certificates of deposit and money market accounts and operates an automated teller machine(ATM)/debit network, which includes ATMs, as well as POS terminals nationwide.

Here is your Cheat Sheet to Discover Financial Services Earnings:

Earnings Expectations: Analysts expect earnings of $1.15 per share on revenues of $2.01 billion. Currently, the company’s P/E ratio stands at 10.86.

Analyst Trends:

Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.14 to a profit $1.17. For the current year, the average estimate is a profit of $4.82, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Discover Financial Services has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 6,957 7,986 8,241 8,550 8,984
Diluted EPS ($) 1.92 2.42 1.22 4.06 4.46

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 2,189.00 2,289.00 2,310.00 2,290.00
Diluted EPS ($) 1.00 1.21 1.07 1.33

Past Performance:
Discover Financial Services has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]