- Discover Financial’s total deposits surpassed the predicted estimate. They were at $110.43 billion, showing a 1.4% increase from the previous quarter.
- The loans fell by 1.4% for the quarter standing at $126.6 billion, but this amount still overshot the estimate of $124.44 billion.
- The net interest margin remained stable at 11% from the recent quarterly report, beating the estimate of 10.6%.
- Net interest income saw a whopping 11% year-on-year increase to $3.49 billion, surpassing the anticipated estimate of $3.4 billion.
- Discover’s cash and investments are recorded at $27.97 billion.
- The firm’s Earnings per Share (EPS) fell from $3.58 year-on-year to $1.10.
- Revenue net of interest expense climbed by 12% year-on-year to $4.21 billion, beating the estimate of $4.07 billion.
- The provision for credit losses grew 36% year-on-year to reach $1.50 billion, slightly above the estimate of $1.49 billion.
- Net charge-offs increased significantly to $1.56 billion from the year-on-year mark of $750 million, surpassing the estimate of $1.47 billion.
- The charge-offs rate was at 4.92%, rising significantly from 2.72% year-on-year and barely surpassing the estimate of 4.84%.
- The analyst sentiments stood at 6 buys, 14 holds, and 0 sells.
A look at Discover Financial Services Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Discover Financial Services, a credit card issuer and electronic payment services company, shows a promising long-term outlook according to Smartkarma Smart Scores. With a strong Growth score of 5, the company is positioned well for future expansion and development. Momentum is also high at 4, indicating positive market momentum. While Value and Dividend scores are moderate at 3, and Resilience lags slightly at 2, the company’s overall outlook appears favorable for growth and performance.
Having a diversified range of financial products such as credit cards, student loans, personal loans, and savings accounts, Discover Financial Services remains competitive in the industry. Additionally, operating an extensive ATM/debit network across the country enhances its accessibility and convenience for customers. With a solid Growth score and positive Momentum, Discover Financial Services seems poised for continued success and strategic advancement in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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