Discover Financial Services DFS shares are trading lower in Wednesday's after-hours session on the heels of the company's second-quarter financial results.
- Q2 Revenue: $3.878 billion versus estimates of $3.8 billion
- Q2 EPS: $3.54 versus estimates of $3.67
Discover said it ended the quarter with $117.9 billion in total loans versus $99.3 billion in the same quarter last year, representing loan growth of 19% year-over-year.
Digital banking revenue came in at $1.1 billion, down $322 million from the prior year. Payment services volume was up 8% year-over-year, and payment services income totaled $70 million, up from $20 million in the prior year.
"This quarter again showed the strength of Discover's business model, as revenue growth offset the impact of normalizing charge-offs, and our deposit base grew another 4%. We are also seeing positive early results from the relaunch of our cash back debit product, an important strategic milestone," said Roger Hochschild, president and CEO of Discover.
During the second quarter, Discover repurchased approximately 6.8 million shares for $700 million. The company's board also declared a quarterly cash dividend of 70 cents per share, payable on Sept. 7 to shareholders as of Aug. 24.
Management will hold a conference call to discuss these results at 8 a.m. ET on Thursday.
See Also: Netflix Shares Rewind From 52-Week Highs: Q2 Revenue Miss, Earnings Beat, Subscriber Growth
DFS Price Action: Discover shares were down 11.5% at $107.80 at the time of writing, according to Benzinga Pro.
Photo: courtesy of Discover.
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