Discover Financial Services Misses Q4 Views

Discover Financial Services DFS on Wednesday posted a sharp decline in fourth-quarter net profits on charges, while total loans grew 6.4 percent.

The company missed Wall Street's profit expectations and changed hands recently in the extended session at $58.65, down 3.6 percent.

The company's fourth-quarter net income fell 32 percent to $404 million, or $0.87 a share, from $602 million, or $1.23 a share, a year earlier.

Revenue fell to $2.04 billion from $2.13 billion last year.

Adjusted income equaled $1.19 a share, versus analysts' expectation of $1.30 a share, on revenue of $2.2 billion.

Results were hurt by a previously announced $178 million charge for elimination of a reserve for credit card rewards forfeiture, as well as a $27 million impairment charge related to the acquisition of the Discover Home Loans platform.