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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.