Discover Financial Services (NYSE:DFS) is scheduled to report Q4 earnings results on January 23, 2020, after markets close for trading.
The company is expected to report earnings of $2.25/share on revenue of $2.943 billion. The consensus earnings per share (EPS) of $2.25/share is based on a poll of 19 analysts and represents a growth of 10.8% over the same quarter last year when the company reported earnings of $2.03/share.
The revenue forecast of $2.943 billion based on a poll of 11 analysts implies a year-over-year (YoY) growth of 4.8%. Last year the company reported $2.807 billion in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, missed 1 quarter, and met expectations 1 quarter.
What are your expectations from Discover Financial Services for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.
After the last earnings report for the period ending September 30, 2019, the stock price did not react much to the update.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
Fundamentals And Technical Analysis
Discover Financial Services is currently trading at $83.68/share, down -0.9% for the day. The company is trading at approximately 90.0% of its 52-week high of $92.98/share. The company’s stock price is up 3.9% since the last earnings report and up 0.8% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 54.01 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 9.0x and a forward P/E multiple of 9.1x. Discover’s current share price also implies a price-to-book (P/B) multiple of 2.4x. The following table summarizes some other key fundamental ratios:
|Last Fiscal Period||FY2019.Q3|
|Period End Date||September 30, 2019|
|Stock Price (Current)||$83.68|
|P/E Ratio (Fwd)||9.1x|
|Total Debt to Capital (%)||47.5%|
|Levered Free Cash Flow||$5.204 billion|
Company Profile: Discover Financial Services
Discover Financial Services is a large-cap stock with a market capitalization of $26.469 billion. The company operates in the Financial sector and the Consumer Finance industry.
Discover operates as a direct banking and payment services company in the United States. The Direct Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home equity loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, savings accounts, checking accounts, and individual retirement arrangement certificates of deposit.
The Payment Services segment operates the PULSE network, an automated teller machine, debit, and electronic funds transfer network; Diners Club International, a payments network that issues Diners Club branded charge cards and provides card acceptance services; and Discover Network that processes transactions for Discover-branded credit and debit cards, as well as provides payment transaction processing and settlement services.
The company was incorporated in 1986 and is based in Riverwoods, Illinois.