For the quarter ended December 2023, Discover (DFS) reported revenue of $4.2 billion, up 12.4% over the same period last year. EPS came in at $1.54, compared to $3.77 in the year-ago quarter.
The reported revenue represents a surprise of +2.41% over the Zacks Consensus Estimate of $4.1 billion. With the consensus EPS estimate being $2.50, the EPS surprise was -38.40%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company’s financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock’s price performance more accurately.
Here is how Discover performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Net interest margin: 11% versus the 16-analyst average estimate of 10.8%.
- Net charge-offs as a percentage of total loans: 4.1% versus the 15-analyst average estimate of 4.2%.
- Operating Efficiency Ratio: 42.3% versus 38.7% estimated by 15 analysts on average.
- Average Balances-Interest earning assets: $147.94 billion versus $146.22 billion estimated by 10 analysts on average.
- Tier 1 Capital to Risk-weighted assets: 12.1% versus 12.2% estimated by 10 analysts on average.
- Credit Card Volume – Discover Card Sales: $57.15 billion compared to the $56.87 billion average estimate based on nine analysts.
- Total Capital to Risk-weighted assets: 13.7% compared to the 13.9% average estimate based on eight analysts.
- Transactions Processed on Networks – Total: $3.28 billion versus $2.93 billion estimated by eight analysts on average.
- Credit Card Volume – Discover Card: $60.92 billion compared to the $60.52 billion average estimate based on eight analysts.
- Transactions Processed on Networks – Discover Network: $974 million versus the seven-analyst average estimate of $995.21 million.
- Network Volume – PULSE Network: $79.19 billion compared to the $73.40 billion average estimate based on six analysts.
- Transactions Processed on Networks – PULSE Network: $2.31 billion compared to the $1.93 billion average estimate based on six analysts.
View all Key Company Metrics for Discover here>>>
Shares of Discover have returned +0.6% over the past month versus the Zacks S&P 500 composite’s +1.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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