Wall Street analysts forecast that Discover (DFS) will report quarterly earnings of $3.32 per share in its upcoming release, pointing to a year-over-year increase of 201.8%. It is anticipated that revenues will amount to $4.21 billion, exhibiting no change compared to the year-ago quarter.
Over the last 30 days, there has been a downward revision of 1.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
In light of this perspective, let's dive into the average estimates of certain Discover metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts predict that the 'Net Interest Margin' will reach 11.7%. The estimate compares to the year-ago value of 11%.
The average prediction of analysts places 'Operating Efficiency' at 39.7%. The estimate is in contrast to the year-ago figure of 54.9%.
The combined assessment of analysts suggests that 'Credit Card Loans - Discover Card Sales Volume' will likely reach $49.75 billion. Compared to the current estimate, the company reported $50.14 billion in the same quarter of the previous year.
Analysts expect 'Net Principal Charge-off Rate' to come in at 5.1%. Compared to the current estimate, the company reported 4.9% in the same quarter of the previous year.
It is projected by analysts that the 'Credit Card Loans - Total Discover Card Volume' will reach $52.52 billion. The estimate compares to the year-ago value of $53.24 billion.
Analysts' assessment points toward 'Network Volume - Total Payment Services' reaching $105.02 billion. Compared to the current estimate, the company reported $100.32 billion in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Tier 1 Risk Based Capital Ratio' should arrive at 15.4%. The estimate compares to the year-ago value of 11.7%.
The consensus estimate for 'Transactions Processed on Networks - Total' stands at $3.43 billion. Compared to the present estimate, the company reported $3.20 billion in the same quarter last year.
Analysts forecast 'Network Volume - Diners Club International' to reach $10.83 billion. Compared to the present estimate, the company reported $10.18 billion in the same quarter last year.
The collective assessment of analysts points to an estimated 'Network Volume - Network Partners' of $9.45 billion. The estimate compares to the year-ago value of $11.07 billion.
The consensus among analysts is that 'Network Volume - PULSE Network' will reach $85.72 billion. The estimate compares to the year-ago value of $79.07 billion.
According to the collective judgment of analysts, 'Transactions Processed on Networks - Discover Network' should come in at $909.38 million. The estimate is in contrast to the year-ago figure of $883 million.
View all Key Company Metrics for Discover here>>>
Shares of Discover have demonstrated returns of -3.2% over the past month compared to the Zacks S&P 500 composite's -5.6% change. With a Zacks Rank #3 (Hold), DFS is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Discover Financial Services (DFS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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