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Wolfe Research Issues Pessimistic Outlook for DFS Earnings

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Discover Financial Services (NYSE:DFS - Free Report) - Equities researchers at Wolfe Research dropped their Q2 2025 EPS estimates for Discover Financial Services in a note issued to investors on Wednesday, April 2nd. Wolfe Research analyst B. Carcache now expects that the financial services provider will post earnings per share of $3.55 for the quarter, down from their previous forecast of $3.57. The consensus estimate for Discover Financial Services' current full-year earnings is $13.88 per share. Wolfe Research also issued estimates for Discover Financial Services' Q4 2025 earnings at $3.74 EPS, Q1 2026 earnings at $3.67 EPS, Q2 2026 earnings at $3.95 EPS, Q3 2026 earnings at $3.87 EPS and Q4 2026 earnings at $4.01 EPS.

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 EPS for the quarter, topping the consensus estimate of $3.13 by $1.98. Discover Financial Services had a return on equity of 26.18% and a net margin of 17.29%.

Other equities research analysts have also issued research reports about the stock. Royal Bank of Canada upped their target price 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. JPMorgan Chase & Co. dropped their price target on Discover Financial Services from $169.00 to $129.00 and set a "neutral" rating for the company in a research report on Tuesday. Barclays lifted their price objective on Discover Financial Services from $186.00 to $209.00 and gave the stock an "overweight" rating in a research report on Friday, January 24th. Wells Fargo & Company upped their target price on Discover Financial Services from $185.00 to $214.00 and gave the company an "equal weight" rating in a report on Friday, January 24th. Finally, StockNews.com downgraded Discover Financial Services from a "buy" rating to a "hold" rating in a research note on Wednesday, April 2nd. Seven analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $188.40.

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Check Out Our Latest Stock Analysis on DFS

Discover Financial Services Price Performance

Shares of DFS traded down $1.64 during trading hours on Monday, hitting $156.98. 1,581,144 shares of the stock were exchanged, compared to its average volume of 1,579,890. The stock's 50-day moving average price is $175.40 and its two-hundred day moving average price is $171.86. Discover Financial Services has a 12-month low of $119.31 and a 12-month 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 cap of $39.50 billion, a price-to-earnings ratio of 9.84, a price-to-earnings-growth ratio of 1.51 and a beta of 1.20.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the company. Point72 Asia Singapore Pte. Ltd. purchased a new stake in shares of Discover Financial Services in the 3rd quarter valued at $30,000. SBI Securities Co. Ltd. purchased a new stake in Discover Financial Services during the fourth quarter worth about $33,000. Flagship Wealth Advisors LLC purchased a new stake in Discover Financial Services during the fourth quarter worth about $34,000. Mattson Financial Services LLC acquired a new stake in shares of Discover Financial Services during the fourth quarter worth about $34,000. Finally, Grove Bank & Trust boosted its stake in shares of Discover Financial Services by 78.1% in the fourth quarter. Grove Bank & Trust now owns 203 shares of the financial services provider's stock valued at $35,000 after purchasing an additional 89 shares during the period. 86.94% of the stock is currently owned by institutional investors and hedge funds.

Discover Financial Services Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, June 6th. Shareholders of record on Friday, May 23rd will be given a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 1.78%. The ex-dividend date is Friday, May 23rd. Discover Financial Services's payout ratio is 17.54%.

About Discover Financial Services

(Get Free Report)

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.

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Earnings History and Estimates for Discover Financial Services (NYSE:DFS)

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