Zacks Research Has Pessimistic View of DFS Q2 Earnings

Discover Financial Services (NYSE:DFS - Free Report) - Zacks Research lowered their Q2 2026 EPS estimates for Discover Financial Services in a note issued to investors on Tuesday, March 11th. Zacks Research analyst D. Chatterjee now anticipates that the financial services provider will post earnings per share of $3.42 for the quarter, down from their prior forecast of $3.54. The consensus estimate for Discover Financial Services' current full-year earnings is $13.88 per share. Zacks Research also issued estimates for Discover Financial Services' Q4 2026 earnings at $4.30 EPS.

Other analysts also recently issued research reports about the stock. StockNews.com downgraded shares of Discover Financial Services from a "buy" rating to a "hold" rating in a research report on Friday, January 24th. Barclays lifted their price objective on shares of Discover Financial Services from $186.00 to $209.00 and gave the stock an "overweight" rating in a report on Friday, January 24th. Truist Financial lifted their price objective on shares of Discover Financial Services from $233.00 to $262.00 and gave the stock a "buy" rating in a report on Monday, January 27th. Wells Fargo & Company lifted their price objective on shares of Discover Financial Services from $185.00 to $214.00 and gave the stock an "equal weight" rating in a report on Friday, January 24th. Finally, Royal Bank of Canada lifted their price objective on shares of Discover Financial Services from $193.00 to $210.00 and gave the stock a "sector perform" rating in a report on Friday, January 24th. Eight investment analysts have rated the stock with a hold rating and five have given a buy rating to the company. According to data from MarketBeat, Discover Financial Services presently has a consensus rating of "Hold" and an average target price of $191.91.

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Discover Financial Services Stock Up 3.9 %

Shares of DFS stock traded up $5.92 during mid-day trading on Friday, reaching $158.91. 3,734,093 shares of the company were exchanged, compared to its average volume of 1,401,829. Discover Financial Services has a fifty-two week low of $119.31 and a fifty-two week high of $205.76. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.03 and a current ratio of 1.09. The company has a market capitalization of $39.98 billion, a P/E ratio of 9.96, a P/E/G ratio of 1.51 and a beta of 1.45. The business's 50 day simple moving average is $187.16 and its 200 day simple moving average is $168.39.

Discover Financial Services (NYSE:DFS - Get Free Report) last posted its quarterly earnings data on Wednesday, January 22nd. The financial services provider reported $5.11 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.13 by $1.98. Discover Financial Services had a net margin of 17.29% and a return on equity of 26.18%.

Institutional Investors Weigh In On Discover Financial Services

Hedge funds and other institutional investors have recently modified their holdings of the stock. Raymond James Financial Inc. bought a new stake in shares of Discover Financial Services during the fourth quarter valued at about $38,489,000. Nomura Asset Management Co. Ltd. raised its position in Discover Financial Services by 10.5% in the third quarter. Nomura Asset Management Co. Ltd. now owns 115,487 shares of the financial services provider's stock worth $16,202,000 after acquiring an additional 10,946 shares in the last quarter. Brookstone Capital Management bought a new stake in Discover Financial Services in the fourth quarter worth about $282,000. Meyer Handelman Co. bought a new stake in Discover Financial Services in the fourth quarter worth about $239,000. Finally, Mechanics Bank Trust Department bought a new stake in Discover Financial Services in the fourth quarter worth about $234,000. 86.94% of the stock is currently owned by institutional investors.

Discover Financial Services Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 6th. Investors of record on Friday, May 23rd will be paid a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.76%. The ex-dividend date of this dividend is Friday, May 23rd. Discover Financial Services's dividend payout ratio is currently 17.54%.

About Discover Financial Services

Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; personal loans, home loans, and other consumer lending; and direct-to-consumer deposit products comprising savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts and checking accounts, and sweep accounts.