DFS' fourth-quarter results benefit from personal and credit card loan growth, margin expansion, and lower provision for credit losses, partially offset by rising expenses.
Discover Financial Services (NYSE:DFS ) Q4 2024 Earnings Conference Call January 23, 2025 8:00 AM ET Company Participants Erin Stieber - IR Michael Shepherd - Interim CEO and President John Greene - CFO Operator Good morning. My name is Madison, and I will be your conference operator today.
While the top- and bottom-line numbers for Discover (DFS) give a sense of how the business performed in the quarter ended December 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Discover (DFS) came out with quarterly earnings of $5.11 per share, beating the Zacks Consensus Estimate of $3.17 per share. This compares to earnings of $1.54 per share a year ago.
Financial services industry player Discover Financial Services (DFS 4.35%) reported fourth quarter 2024 earnings on Wednesday, Jan. 22, that topped analyst consensus estimates. Discover noted a significant rise in net income to $1.3 billion or $5.11 per diluted share, far exceeding the analyst estimate of $3.61 per share.
U.S. credit card issuer Discover Financial posted a more than threefold increase in fourth-quarter profit on Wednesday, helped by a drop in provisions for credit losses and a rise in interest income.
Rising interest and non-interest income might have favored DFS' fourth-quarter earnings, partially offset by higher operating expenses.
Beyond analysts' top -and-bottom-line estimates for Discover (DFS), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended December 2024.
Discover (DFS) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Discover (DFS) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Discover Financial Services shows strong financial performance with a 41% increase in net income and a 42% rise in EPS, driven by higher interest margins. The planned merger with Capital One will create the largest U.S. credit card issuer, enhancing synergies and operational efficiencies and boosting the credit card and payment business. While the P/E ratio of 12.5 suggests a reasonable valuation with potential upside, cautious investors may wait as the stock's P/B ratio of 2.8 indicates it is historically fully valued.
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