William Blair Brokers Decrease Earnings Estimates for Discover Financial Services (DFS)
Discover Financial Services (NYSE:DFS) – Investment analysts at William Blair cut their Q1 2018 earnings per share (EPS) estimates for shares of Discover Financial Services in a research note issued on Tuesday. William Blair analyst R. Napoli now forecasts that the financial services provider will post earnings per share of $1.51 for the quarter, down from their previous forecast of $1.52. William Blair has a “Outperform” rating on the stock. William Blair also issued estimates for Discover Financial Services’ Q3 2018 earnings at $1.75 EPS and Q4 2018 earnings at $1.72 EPS.
Discover Financial Services (NYSE:DFS) last announced its quarterly earnings data on Wednesday, July 26th. The financial services provider reported $1.40 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.45 by ($0.05). The firm had revenue of $2.42 billion for the quarter, compared to analyst estimates of $2.40 billion. Discover Financial Services had a return on equity of 21.28% and a net margin of 20.91%. The company’s quarterly revenue was up 9.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.47 earnings per share. TRADEMARK VIOLATION WARNING: This piece of content was first reported by The Cerbat Gem and is the sole property of of The Cerbat Gem. If you are reading this piece of content on another domain, it was copied illegally and reposted in violation of United States & international copyright and trademark law. The correct version of this piece of content can be read at https://www.thecerbatgem.com/2017/10/21/william-blair-brokers-decrease-earnings-estimates-for-discover-financial-services-dfs.html.
DFS has been the subject of several other research reports. Wells Fargo & Company initiated coverage on Discover Financial Services in a report on Tuesday, October 10th. They set a “market perform” rating and a $69.00 price objective for the company. Zacks Investment Research upgraded Discover Financial Services from a “sell” rating to a “hold” rating in a research report on Tuesday, August 29th. Instinet restated a “buy” rating and issued a $81.00 target price (down previously from $86.00) on shares of Discover Financial Services in a research report on Wednesday, July 12th. Morgan Stanley restated an “overweight” rating and issued a $75.00 target price (down previously from $81.00) on shares of Discover Financial Services in a research report on Thursday, July 6th. Finally, BidaskClub downgraded Discover Financial Services from a “hold” rating to a “sell” rating in a research report on Monday, June 26th. Three investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and sixteen have issued a buy rating to the company. The company has an average rating of “Hold” and a consensus target price of $73.58.
Shares of Discover Financial Services (DFS) traded up 1.39% during midday trading on Thursday, reaching $66.57. 3,211,817 shares of the company’s stock were exchanged. Discover Financial Services has a 12 month low of $55.41 and a 12 month high of $74.33. The firm has a 50 day moving average price of $62.45 and a 200 day moving average price of $61.67. The company has a market cap of $24.79 billion, a P/E ratio of 11.49 and a beta of 1.47.
Several institutional investors have recently made changes to their positions in DFS. BlackRock Inc. raised its holdings in shares of Discover Financial Services by 3,280.4% during the first quarter. BlackRock Inc. now owns 30,704,582 shares of the financial services provider’s stock valued at $2,099,886,000 after acquiring an additional 29,796,268 shares in the last quarter. Diamond Hill Capital Management Inc. raised its holdings in shares of Discover Financial Services by 97.6% during the third quarter. Diamond Hill Capital Management Inc. now owns 7,035,035 shares of the financial services provider’s stock valued at $453,619,000 after acquiring an additional 3,475,126 shares in the last quarter. Hotchkis & Wiley Capital Management LLC bought a new position in shares of Discover Financial Services during the second quarter valued at approximately $199,350,000. Principal Financial Group Inc. raised its holdings in shares of Discover Financial Services by 492.6% during the second quarter. Principal Financial Group Inc. now owns 3,504,010 shares of the financial services provider’s stock valued at $217,914,000 after acquiring an additional 2,912,742 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership raised its holdings in shares of Discover Financial Services by 320.9% during the second quarter. Arrowstreet Capital Limited Partnership now owns 2,672,385 shares of the financial services provider’s stock valued at $166,196,000 after acquiring an additional 2,037,515 shares in the last quarter. Institutional investors own 85.45% of the company’s stock.
In related news, CEO David W. Nelms sold 30,000 shares of the company’s stock in a transaction that occurred on Friday, September 1st. The stock was sold at an average price of $59.10, for a total transaction of $1,773,000.00. Following the completion of the transaction, the chief executive officer now owns 1,529,912 shares in the company, valued at $90,417,799.20. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, COO Roger C. Hochschild sold 15,258 shares of the company’s stock in a transaction that occurred on Monday, October 2nd. The shares were sold at an average price of $64.87, for a total value of $989,786.46. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 157,002 shares of company stock valued at $9,694,424. 0.96% of the stock is owned by corporate insiders.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 7th. Investors of record on Wednesday, November 22nd will be issued a dividend of $0.35 per share. The ex-dividend date is Tuesday, November 21st. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.10%. Discover Financial Services’s dividend payout ratio is presently 24.18%.
Discover Financial Services declared that its Board of Directors has approved a share repurchase plan on Wednesday, June 28th that allows the company to buyback $2.23 billion in shares. This buyback authorization allows the financial services provider to buy up to 9.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.
About Discover Financial Services
Discover Financial Services (DFS) is a direct banking and payment services company. The Company is a bank holding company, as well as a financial holding company. The Company operates through two segments: Direct Banking and Payment Services. It provides direct banking products and services, and payment services through its subsidiaries.
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