DFS Earnings Prediction
The chart below shows how DFS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DFS sees a -3.90% change in stock price 10 days leading up to the earnings, and a -0.82% change 10 days following the report. On the earnings day itself, the stock moves by +0.30%. This data can give you a slight idea of what to expect for the next quarter's release.
DFS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
4.76B
13.42%
6.87%
Gross Margin
--
--
--
Operating Margin
35.76%
193.11%
33.58%
Net Margin
27.13%
193.30%
38.84%
EPS
5.11
231.82%
53.92%
No Data Available
DFS Earnings Analysis
Discover Financial Services Corporation (DFS.N) Earnings Conference Call
Positive
Net Income Surge: Net income for Q3 2024 reached $965 million, a 41% increase from the prior year, driven by revenue growth and net interest margin expansion.
Net Interest Margin Improvement: Net interest margin improved to 11.38%, up 43 basis points year over year, reflecting a favorable card promotional balance mix.
Consumer Deposits Increase: Average consumer deposits rose by 11% year over year, indicating strong liquidity management and benefits from the student loan sale.
Non-Interest Income Increase: Non-interest income increased by $76 million or 11%, bolstered by gains from the loan sale and higher loan fee revenue.
Tier 1 Ratio Improvement: The common equity Tier 1 ratio improved to 12.7%, up 80 basis points, supported by core earnings and the successful student loan sale.
Negative
Card Receivables Increase: Card receivables increased 3% year over year due to a lower payment rate, partially offset by a decrease in sales volume, with Discover card sales down 3% compared to the prior year.
Payment Rate Decline: The payment rate declined around 100 basis points from last year, indicating cautious consumer behavior and credit tightening actions that began in 2022.
Operating Expenses Increase: Total operating expenses were up $238,000,000 or 16% year over year, driven by increased compensation costs and professional fees related to merger and integration planning.
Credit Performance Deterioration: Total net charge offs were 4.86%, 134 basis points higher than the prior year, indicating a deterioration in credit performance despite some improvements in card net charge offs.
Loan Growth Outlook Adjustment: The revised outlook for loan growth has been adjusted down to low to mid-single digits, reflecting a higher than anticipated payment rate and slightly lower card sales.
DFS FAQs
How does DFS typically perform around its earnings report dates?
Is Earnings call transcript: Discover's Q4 2024 earnings beat forecasts, stock rises positive or negative?
How can historical earnings data help predict future stock performance?
DFS Earning Call Sentiment
Earnings call transcript: Discover's Q4 2024 earnings beat forecasts, stock rises
DFS.N
-0.88%Positive
The earnings call presents mixed signals. Strong net income growth and improved credit performance are positive, but cautious consumer behavior and competitive pressures weigh negatively. The merger with Capital One is progressing, yet regulatory issues pose risks. The lack of share repurchase and a modest dividend indicate limited shareholder returns. Overall, the financials are stable, but uncertainties in guidance and regulatory challenges lead to a neutral outlook.