Discover (DFS) reported $4.25 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 1%. EPS of $4.25 for the same period compares to $1.10 a year ago.
The reported revenue represents a surprise of +0.67% over the Zacks Consensus Estimate of $4.22 billion. With the consensus EPS estimate being $3.30, the EPS surprise was +28.79%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Discover performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Net Interest Margin: 12.2% compared to the 11.9% average estimate based on 15 analysts.
- Operating Efficiency: 36.8% versus 39.7% estimated by 15 analysts on average.
- Net Principal Charge-off Rate: 5% versus the 13-analyst average estimate of 5.1%.
- Credit Card Loans - Discover Card Sales Volume: $49.31 billion versus $49.72 billion estimated by 13 analysts on average.
- Network Volume - Total Payment Services: $96.38 billion versus $105.02 billion estimated by nine analysts on average.
- Network Volume - Network Partners: $3.01 billion versus the eight-analyst average estimate of $9.45 billion.
- Credit Card Loans - Total Discover Card Volume: $52.41 billion compared to the $52.44 billion average estimate based on eight analysts.
- Network Volume - Diners Club International: $12.05 billion versus $10.83 billion estimated by eight analysts on average.
- Tier 1 Risk Based Capital Ratio: 15.6% compared to the 15% average estimate based on eight analysts.
- Network Volume - PULSE Network: $81.33 billion versus $85.72 billion estimated by eight analysts on average.
- Average Balances - Total Interest Earning Assets: $149.09 billion compared to the $149.71 billion average estimate based on seven analysts.
- Transactions Processed on Networks - Total: $3.26 billion versus the seven-analyst average estimate of $3.41 billion.
View all Key Company Metrics for Discover here>>>
Shares of Discover have returned +1.6% over the past month versus the Zacks S&P 500 composite's -6.6% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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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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