A Peek at Discover Finl's Future Earnings

Discover Finl DFS will release its quarterly earnings report on Wednesday, 2024-10-16. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Discover Finl to report an earnings per share (EPS) of $3.36.

The announcement from Discover Finl is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings Track Record

Last quarter the company beat EPS by $2.99, which was followed by a 1.05% increase in the share price the next day.

Here's a look at Discover Finl's past performance and the resulting price change:

Stock Performance

Shares of Discover Finl were trading at $147.31 as of October 14. Over the last 52-week period, shares are up 61.13%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Discover Finl

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Discover Finl.

The consensus rating for Discover Finl is Neutral, derived from 5 analyst ratings. An average one-year price target of $139.0 implies a potential 5.64% downside.

Analyzing 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.

• For Credit Acceptance, analysts project an Sell trajectory, with an average 1-year price target of $400.0, indicating a potential 171.54% upside.
• The consensus outlook from analysts is an Outperform trajectory for Enova International, with an average 1-year price target of $90.5, indicating a potential 38.56% downside.

Peers Comparative Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Credit Acceptance and Enova International, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Discover Finl is positioned at the top for Revenue Growth among its peers. It ranks in the middle for Gross Profit and Return on Equity.

Get to Know Discover Finl Better

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.

Discover Finl's Financial Performance

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Discover Finl's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 17.02%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Discover Finl's net margin excels beyond industry benchmarks, reaching 33.52%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Discover Finl's ROE excels beyond industry benchmarks, reaching 10.61%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Discover Finl's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.0% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Discover Finl's debt-to-equity ratio is below the industry average. With a ratio of 1.28, 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.