Discover Stock Is Moving Lower Thursday: What's Happening?

Discover Financial Services DFS shares are trading lower Thursday after the company reported fourth-quarter financial results.

What Happened: Discover reported fourth-quarter earnings of $1.54 per share, which came in well below analyst estimates of $2.52 per share, according to Benzinga Pro.

Total revenue net of interest expense was $4.196 billion in the quarter, up 13% year-over-year. Total loans at the end of the period were $128.4 billion, up 15% year-over-year. Fourth-quarter total net charge-off rate came in at 4.11%.

Digital Banking pretax income was $458 million, down $848 million from the prior year reflecting a higher provision for credit losses and higher operating expenses.

Payment Services pretax income totaled $54 million, which was up $17 million year-over-year primarily driven by increased PULSE revenue.

“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, interim CEO and president of Discover.

“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.”

Discover also declared a semi-annual cash dividend on its Series C stock of $2,750 per share, which equals $27.50 per depositary share. The company declared a semi-annual cash dividend of $3,062.50 per share on Series D stock, which equals $30.625 per depositary share.

Check This Out: Discover Financial Posts Lower Q4 Profit, Joins Plug Power And Other Big Stocks Moving Lower In Thursday’s Pre-Market Session

DFS Price Action: Discover shares were down 7.12% at $101.02 at the time of publication, according to Benzinga Pro.

Photo: 3844328 from Pixabay.