Benzinga - by Avi Kapoor, Benzinga Staff Writer.
Discover Financial Services (NYSE: DFS) reported a 62% plunge in its profit for the fourth quarter on Wednesday.
Discover reported quarterly earnings of $1.54 per share which fell below the Street's estimate of $2.52. Revenue clocked in at $4.196 billion, net of interest expense, beating analyst estimates of $4.10 billion, according to data from Benzinga Pro.
Total loans at the end of the period were $128.4 billion, up 15% year-over-year. Fourth-quarter total net charge-off rate came in at 4.11%.
“Discover’s performance in 2023 was driven by strong asset and deposit growth and a resilient net interest margin, while net charge-offs increased but to the low end of our expected range,” said John Owen, interim CEO and president of Discover.
Discover also declared a semi-annual cash dividend on its Series C stock of $2,750 per share, which equals $27.50 per depositary share. The company declared a semi-annual cash dividend of $3,062.50 per share on Series D stock, which equals $30.625 per depositary share.
Discover Financial shares dipped 10.8% to close at $97.00 on Thursday.
These analysts made changes to their price targets on Discover Financial following earnings announcement.
- Barclays cut the price target on Discover Financial from $124 to $112. Barclays analyst Mark Devries maintained an Equal-Weight rating.
- HSBC lowered the price target on Discover Financial from $121 to $107. HSBC analyst Saul Martinez downgraded the stock from Buy to Hold.
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Latest Ratings for DFS
| Feb 2022 | Deutsche Bank | Upgrades | Hold | Buy |
| Feb 2022 | Morgan Stanley | Maintains | Equal-Weight | |
| Jan 2022 | Piper Sandler | Upgrades | Neutral | Overweight |
View the Latest Analyst Ratings
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