Zacks Research Issues Optimistic Outlook for DFS Earnings

Discover Financial Services (NYSE:DFS) – Zacks Research raised their Q1 2025 earnings per share estimates for shares of Discover Financial Services in a note issued to investors on Tuesday, March 11th. Zacks Research analyst D. Chatterjee now forecasts that the financial services provider will earn $3.28 per share for the quarter, up from their previous estimate of $3.24. 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’ Q2 2025 earnings at $3.36 EPS, Q3 2025 earnings at $3.32 EPS, Q4 2025 earnings at $3.16 EPS, FY2025 earnings at $13.12 EPS, Q1 2026 earnings at $3.79 EPS, Q3 2026 earnings at $3.71 EPS, FY2026 earnings at $15.22 EPS and FY2027 earnings at $17.67 EPS.

Discover Financial Services (NYSE:DFS) last announced its earnings results on Wednesday, January 22nd. The financial services provider reported $5.11 earnings per share for the quarter, beating the consensus estimate of $3.13 by $1.98. Discover Financial Services had a net margin of 17.29% and a return on equity of 26.18%.

Several other research analysts have also issued reports on DFS. JPMorgan Chase & Co. boosted their target price on Discover Financial Services from $146.00 to $169.00 and gave the company a “neutral” rating in a research report on Friday, January 24th. Barclays boosted their price objective on Discover Financial Services from $186.00 to $209.00 and gave the company an “overweight” rating in a report on Friday, January 24th. Wells Fargo & Company increased their target price on Discover Financial Services from $185.00 to $214.00 and gave the stock an “equal weight” rating in a research note on Friday, January 24th. StockNews.com downgraded Discover Financial Services from a “buy” rating to a “hold” rating in a research report on Friday, January 24th. Finally, Truist Financial upped their price target 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. Nine analysts have rated the stock with a hold rating and five have issued a buy rating to the company. Based on data from MarketBeat, Discover Financial Services currently has an average rating of “Hold” and an average price target of $191.91.

Discover Financial Services Stock Performance

Shares of NYSE:DFS opened at $164.67 on Thursday. The company has a current ratio of 1.09, a quick ratio of 1.03 and a debt-to-equity ratio of 1.09. Discover Financial Services has a 12 month low of $119.31 and a 12 month high of $205.76. The company has a market capitalization of $41.43 billion, a price-to-earnings ratio of 10.32, a PEG ratio of 1.51 and a beta of 1.45. The firm’s 50-day moving average is $187.69 and its 200 day moving average is $167.82.

Institutional Investors Weigh In On Discover Financial Services

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. increased its holdings in Discover Financial Services by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 31,045,208 shares of the financial services provider’s stock valued at $5,377,961,000 after buying an additional 290,937 shares during the period. State Street Corp boosted its position in Discover Financial Services by 0.8% during the 3rd quarter. State Street Corp now owns 10,498,044 shares of the financial services provider’s stock valued at $1,472,771,000 after acquiring an additional 80,601 shares in the last quarter. FMR LLC increased its holdings in shares of Discover Financial Services by 0.8% in the 4th quarter. FMR LLC now owns 7,553,016 shares of the financial services provider’s stock valued at $1,308,409,000 after acquiring an additional 59,154 shares during the period. Geode Capital Management LLC raised its position in shares of Discover Financial Services by 2.7% in the 4th quarter. Geode Capital Management LLC now owns 6,240,451 shares of the financial services provider’s stock worth $1,082,826,000 after acquiring an additional 165,589 shares in the last quarter. Finally, Norges Bank purchased a new stake in shares of Discover Financial Services during the 4th quarter worth $724,720,000. Institutional investors own 86.94% of the company’s stock.

Discover Financial Services Announces Dividend

The firm 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 dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a yield of 1.70%. The ex-dividend date of this dividend is Friday, May 23rd. Discover Financial Services’s dividend payout ratio (DPR) is 17.54%.

Discover Financial Services Company Profile

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.