Discover Finl DFS is preparing to release its quarterly earnings on Wednesday, 2025-04-23. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Discover Finl to report an earnings per share (EPS) of $3.30.
Anticipation surrounds Discover Finl's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Overview of Past Earnings
In the previous earnings release, the company beat EPS by $1.54, leading to a 1.75% increase in the share price the following trading session.
Here's a look at Discover Finl's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 3.57 | 3.42 | 3.07 | 2.95 |
| EPS Actual | 5.11 | 3.69 | 6.06 | 1.10 |
| Price Change % | 2.0% | 2.0% | 1.0% | 4.0% |
Market Performance of Discover Finl's Stock
Shares of Discover Finl were trading at $165.31 as of April 21. Over the last 52-week period, shares are up 32.19%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Insights on Discover Finl
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Discover Finl.
With 7 analyst ratings, Discover Finl has a consensus rating of Neutral. The average one-year price target is $201.71, indicating a potential 22.02% upside.
Analyzing Analyst Ratings Among Peers
The following analysis focuses on the analyst ratings and average 1-year price targets of Credit Acceptance and Enova International, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Credit Acceptance, with an average 1-year price target of $475.0, suggesting a potential 187.34% upside.
- Analysts currently favor an Buy trajectory for Enova International, with an average 1-year price target of $134.5, suggesting a potential 18.64% downside.
Snapshot: Peer Analysis
The peer analysis summary offers a detailed examination of key metrics for Credit Acceptance and Enova International, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| FirstCash Hldgs | Outperform | 3.72% | $433.69M | 4.12% |
| Credit Acceptance | Neutral | 14.89% | $351.10M | 8.95% |
| Enova International | Buy | 25.01% | $336.05M | 5.36% |
Key Takeaway:
Discover Finl is positioned in the middle among its peers for revenue growth, with one peer showing higher growth and another showing lower growth. In terms of gross profit, Discover Finl ranks at the top compared to its peers. For return on equity, Discover Finl is positioned in the middle, with one peer having a higher return and another peer having a lower return.
Delving into Discover Finl's Background
Discover Financial Services is a bank operating in two distinct segments: direct banking and payment services. The company issues credit and debit cards and provides other consumer banking products including deposit accounts and personal loans. It also operates the Discover, Pulse, and Diners Club networks. The Discover network is the fourth-largest payment network in the United States as ranked by overall purchase volume, and Pulse is one of the largest ATM networks in the country.
Understanding the Numbers: Discover Finl's Finances
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
Revenue Growth: Discover Finl's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 13.85%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.
Net Margin: Discover Finl's net margin excels beyond industry benchmarks, reaching 26.98%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Discover Finl's ROE stands out, surpassing industry averages. With an impressive ROE of 7.8%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Discover Finl's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.86%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Discover Finl's debt-to-equity ratio is below the industry average. With a ratio of 0.96, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
To track all earnings releases for Discover Finl visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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