What is Zacks Research’s Estimate for DFS Q1 Earnings?

Discover Financial Services (NYSE:DFS) – Research analysts at Zacks Research dropped their Q1 2025 EPS estimates for Discover Financial Services in a research note issued to investors on Wednesday, April 9th. Zacks Research analyst D. Chatterjee now anticipates that the financial services provider will post earnings of $3.24 per share for the quarter, down from their prior forecast of $3.28. 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 $3.34 EPS, Q3 2025 earnings at $3.30 EPS, Q4 2025 earnings at $3.15 EPS, FY2025 earnings at $13.04 EPS, Q1 2026 earnings at $3.77 EPS, Q4 2026 earnings at $4.28 EPS, FY2026 earnings at $15.15 EPS, Q1 2027 earnings at $4.35 EPS and FY2027 earnings at $17.59 EPS.

Discover Financial Services (NYSE:DFS) last released its quarterly earnings results on Wednesday, January 22nd. The financial services provider reported $5.11 EPS for the quarter, topping analysts’ consensus estimates 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 equities analysts have also recently issued reports on DFS. Barclays lifted their price target on Discover Financial Services from $186.00 to $209.00 and gave the company an “overweight” rating in a research report on Friday, January 24th. UBS Group raised 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 report on Monday, January 13th. Wells Fargo & Company upped their price target on shares of Discover Financial Services from $185.00 to $214.00 and gave the company an “equal weight” rating in a report on Friday, January 24th. Truist Financial reduced their price objective on shares of Discover Financial Services from $262.00 to $219.00 and set a “buy” rating for the company in a research report on Friday, March 21st. Finally, JPMorgan Chase & Co. dropped their target price on shares of Discover Financial Services from $169.00 to $129.00 and set a “neutral” rating on the stock in a report on Tuesday, April 8th. Seven equities research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $188.40.

Discover Financial Services Price Performance

NYSE DFS opened at $156.98 on Monday. Discover Financial Services has a 12 month low of $119.31 and a 12 month high of $205.76. The firm has a market capitalization of $39.50 billion, a PE ratio of 9.84, a P/E/G ratio of 1.51 and a beta of 1.20. The company’s 50 day simple moving average is $175.40 and its 200 day simple moving average is $172.09. The company has a debt-to-equity ratio of 1.09, a current ratio of 1.09 and a quick ratio of 1.03.

Institutional Investors Weigh In On Discover Financial Services

Hedge funds have recently made changes to their positions in the company. Invst LLC lifted its holdings in shares of Discover Financial Services by 0.9% in the third quarter. Invst LLC now owns 7,253 shares of the financial services provider’s stock valued at $1,018,000 after purchasing an additional 62 shares in the last quarter. Sanctuary Advisors LLC lifted its stake in Discover Financial Services by 19.5% in the 3rd quarter. Sanctuary Advisors LLC now owns 46,475 shares of the financial services provider’s stock worth $6,520,000 after acquiring an additional 7,585 shares in the last quarter. Wilmington Savings Fund Society FSB lifted its stake in Discover Financial Services by 117.6% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 7,869 shares of the financial services provider’s stock worth $1,104,000 after acquiring an additional 4,253 shares in the last quarter. Tidal Investments LLC boosted its position in Discover Financial Services by 7.0% during the 3rd quarter. Tidal Investments LLC now owns 14,415 shares of the financial services provider’s stock worth $2,022,000 after acquiring an additional 942 shares during the period. Finally, Peapack Gladstone Financial Corp grew its stake in Discover Financial Services by 15.7% during the 3rd quarter. Peapack Gladstone Financial Corp now owns 6,207 shares of the financial services provider’s stock valued at $871,000 after acquiring an additional 842 shares in the last quarter. Hedge funds and other institutional investors own 86.94% of the company’s stock.

Discover Financial Services Announces Dividend

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