Wolfe Research Issues Negative Outlook for DFS Earnings

Discover Financial Services (NYSE:DFS) – Investment analysts at Wolfe Research reduced their Q2 2025 EPS estimates for Discover Financial Services in a research report issued to clients and investors on Wednesday, April 2nd. Wolfe Research analyst B. Carcache now forecasts that the financial services provider will earn $3.55 per share 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) last posted its earnings results 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 return on equity of 26.18% and a net margin of 17.29%.

Several other research analysts also recently weighed in on DFS. Wells Fargo & Company boosted their target price on shares of Discover Financial Services from $185.00 to $214.00 and gave the company an “equal weight” rating in a research note on Friday, January 24th. Keefe, Bruyette & Woods boosted their price objective on shares of Discover Financial Services from $170.00 to $232.00 and gave the company an “outperform” rating in a research report on Monday, December 9th. JPMorgan Chase & Co. upped their price objective on shares of Discover Financial Services from $146.00 to $169.00 and gave the company a “neutral” rating in a research note on Friday, January 24th. UBS Group raised shares of Discover Financial Services from a “neutral” rating to a “buy” rating and lifted their target price for the stock from $150.00 to $239.00 in a research note on Monday, January 13th. Finally, StockNews.com lowered Discover Financial Services from a “buy” rating to a “hold” rating in a research note on Wednesday, April 2nd. Seven research 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 company presently has an average rating of “Hold” and a consensus target price of $192.40.

Discover Financial Services Stock Up 2.5 %

Shares of NYSE:DFS opened at $150.78 on Monday. The company has a quick ratio of 1.03, a current ratio of 1.09 and a debt-to-equity ratio of 1.09. The company has a market capitalization of $37.94 billion, a P/E ratio of 9.45, a P/E/G ratio of 1.51 and a beta of 1.20. Discover Financial Services has a 52-week low of $119.31 and a 52-week high of $205.76. The stock’s fifty day simple moving average is $180.36 and its 200-day simple moving average is $171.47.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in DFS. GAMMA Investing LLC increased its stake in Discover Financial Services by 16,786.2% during the first quarter. GAMMA Investing LLC now owns 784,366 shares of the financial services provider’s stock worth $133,891,000 after acquiring an additional 779,721 shares during the last quarter. Quent Capital LLC increased its position in Discover Financial Services by 35.1% during the 1st quarter. Quent Capital LLC now owns 1,989 shares of the financial services provider’s stock worth $339,000 after purchasing an additional 517 shares in the last quarter. Sage Capital Advisors llc purchased a new position in Discover Financial Services in the first quarter valued at approximately $4,515,000. Versant Capital Management Inc lifted its position in Discover Financial Services by 23.8% during the first quarter. Versant Capital Management Inc now owns 1,597 shares of the financial services provider’s stock valued at $273,000 after buying an additional 307 shares in the last quarter. Finally, Mascagni Wealth Management Inc. acquired a new position in Discover Financial Services during the fourth quarter valued at approximately $41,000. 86.94% of the stock is owned by hedge funds and other institutional investors.

Discover Financial Services Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 6th. Stockholders of record on Friday, May 23rd will be issued a dividend of $0.70 per share. The ex-dividend date of this dividend is Friday, May 23rd. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.86%. Discover Financial Services’s payout ratio is 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.