Discover Financial Services DFS shares are trading lower in Wednesday's after-hours session after the company reported its fourth-quarter financial results.
What To Know: Discover reported quarterly earnings of $1.54 per share which fell below the Street's estimate of $2.52, a decrease of 58% compared to $3.74 per share for the same period last year.
Revenue clocked in at $4.196 billion, net of interest expense, beating analyst estimates of $4.10 billion, representing an increase of 13% year-over-year.
Total loans ended the quarter at $128.4 million, a year-over-year increase of 15%.
It was also worth noting the total net charge-off rate was 4.11% compared to 2.13% in the same period last year.
Additionally, the provision for credit losses was $1.9 billion, marking growth of $1 billion year-over-year.
"Discover's performance in 2023 was driven by strong asset and deposit growth and a resilient net interest margin, while net charge-offs increased but to the low end of our expected range," said John Owen, Discover's Interim CEO and president.
"Additionally, we have taken steps to strengthen our risk management and compliance programs; launched an important new product, Cashback Debit; and announced our new CEO. These factors position Discover to generate strong shareholder value in 2024 and beyond."
DFS Price Action: Shares of Discover were down 6.20% at $102 in the after-hours session at the time of publication Wednesday, according to Benzinga Pro.
Related Link: Alcoa Reports Mixed Q4 Results And Issues 2024 Production And Shipment Forecast; Stock Falls After-Hours
Photo: Ahmad Ardity from Pixabay
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