=Discover Financial Services (DFS) reported earnings on Thur 20 Jul 23 (b/o)

 

Discover Financial Services misses by $0.13, reports revs in-line; in discussions with its regulators regarding card product misclassification; pauses share repurchases;

• Reports Q2 (Jun) earnings of $3.54 per share, $0.13 worse than the FactSet Consensus of $3.67; revenues rose 20.7% year/year to $3.88 bln vs the $3.88 bln FactSet Consensus.
• Co has decided to pause share repurchases while the internal review of compliance, risk management and corporate governance is pending.
• Co also discloses Card Product Misclassification. Beginning around mid-2007, Discover incorrectly classified certain credit card accounts into its highest merchant and merchant acquirer pricing tier. Incremental revenue resulting from this card product misclassification amounted to less than 1% of its cumulative discount and interchange revenue, gross, since that time, or less than two basis points as a percentage of sales over this timeframe. The misclassification affected pricing for certain merchants and merchant acquirers, but not for cardholders.
• Management is taking actions to correct the card product misclassification going forward and to prepare a program to compensate affected direct merchants and merchant acquirers. However, given differences in individual merchant agreements, changes in network terms, and availability of historical data, it is difficult to determine the final amount of potential refunds at this time. An investigation into this issue by an external law firm working at the direction of the Audit Committee of the Board of Directors is ongoing. Discover is in discussions with its regulators regarding this matter and corporate governance and risk management. In addition, the Company received a proposed consent order from the FDIC in connection with consumer compliance. This proposed consent order does not include the card product classification matter. Additional supervisory actions could occur.

Discover Financial Services (DFS) reported earnings on Thur 23 Jan 20 (a/h)

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Discover Financial Services beats by $0.01, reports revs in-line

Reports Q4 (Dec) earnings of $2.25 per share, $0.01 better than the S&P Capital IQ Consensus of $2.24; revenues rose 4.9% year/year to $2.94 bln vs the $2.94 bln S&P Capital IQ Consensus. 

Direct Banking pretax income of $883 mln increased by $9 mln from the prior year, driven by higher net interest income, partially offset by an increase in the provision for loan losses and higher operating expenses.

Total loans ended the quarter at $95.9 bln, up 6% compared to the prior year. Credit card loans ended the quarter at $77.2 bln, up 6% from the prior year.

Earnings this week : Jan 20 - 24, 20 (wk 4)

Monday (Jan 20)

• The market closed on Monday for Martin Luther King Jr. Day.

Tuesday (Jan 21)

• Morning: CMA FNB HAL ONB PETS SBNY TAL
• Afternoon: COF FMBI FULT IBM NAVI NFLX PNFP RNST AMTD TBK UAL UCBI WTFC ZION

Wednesday (Jan 22)

• Morning: ABT ALLY APH ASML BKR BOKF CBSH CBU FITB HTLD JNJ HZO NTRS PLD RCI
• Afternoon: BXS CATY CTXS CNS CVBF FUL HOPE KMI PLXS PTC RJF SLM SLG STLD STL TER TCBI TXN UMPQ

Thursday (Jan 23)

• Morning: AAL AIT AVX BANC BKU CADE COLB CMCSA EWBC FCX GATX HBAN JBLU KEY KMB MTB ORI PPBI PG SFNC LUV STM TRV UNP VFC WBS
• Afternoon: ABCB ASB TEAM AVT DFS ETFC FFBC INTC ISRG MRTN NBHC NXGN SWKS SIVB WAL

Friday (Jan 24) 

• Morning: APD AXP ERIC HRC IBKC MOG.A NEE SYF SNV

Discover Financial Services (DFS) reported earnings on Thur 24 Jan 2019 (a/h)

• 33, 53, 54, 60, 69, 79, 91, 

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Discover Financial Services misses by $0.03, reports revs in-line

• Reports Q4 (Dec) earnings of $2.03 per share, $0.03 worse than the S&P Capital IQ Consensus of $2.06; revenues rose 7.4% year/year to $2.81 bln vs the $2.81 bln S&P Capital IQ Consensus. Total loans ended the quarter at $90.5 billion, up 7% compared to the prior year. Credit card loans ended the quarter at $72.9 billion, up 8% from the prior year. Personal loans increased $80 million, or 1%, from the prior year. Private student loans increased $205 million, or 2%, year-over-year, and grew $652 million, or 9%, excluding purchased student loans. Net interest income increased $181 million, or 9%, from the prior year, driven by loan growth and net interest margin expansion. Net interest margin was 10.35%, up 7 basis points versus the prior year. Card yield was 13.20%, an increase of 41 basis points from the prior year as a result of increases in the prime rate, partially offset by a change in portfolio mix and higher interest charge-offs. Interest expense as a percent of total loans increased 61 basis points from the prior year, primarily as a result of higher market rates.
• Provision for loan losses of $800 million increased $122 million from the prior year due to higher net charge-offs and a higher reserve build. The reserve build for the fourth quarter of 2018 was $120 million, compared to a reserve build of $94 million in the fourth quarter of 2017.

Earnings this week : Jan 21 - 25, 19 (wk 4)

Earnings confirmed to report this week:

Monday (Jan 21)    

• Market closed for Martin Luther King Jr. Day

Tuesday (Jan 22)

• Morning: ATI FITB GATX HAL HMST JNJ LOGI EDU PETS PLD SWK TRV
• Afternoon: AMTD CNMD COF FMBI HOPE IBKR IBM LRN LTXB NAVI RNST SFNC TBK UCBI WTFC ZION

Wednesday (Jan 23)

• Morning:  ABT APH ASML BKU BPOP CBU CMCSA HZO KMB NTRS PG PGR RES ROL SYF TDY TEL UTX WAT
• Afternoon:  ADTN AZPN BGG BXS CATY CCI CMRE CNS CP CTXS CVBF F FFBC FFIV HXL LRCX  LVS NXGN PTC RJF SLG SLM STL TCBI TER TRMK TXN UMPQ URI VAR XLNX

Thursday (Jan 24)

• Morning:  AAL AEP AIT AVX BANC BMY COLB DLX EWBC FCX GWW HBAN ISCA JBLU LUV MKC MMYT ORI RCI STM TAL TXT UNP VIVO WBS
• Afternoon: ALK ASB AVT CUBI DFS  ETFC FHB FII HTH INTC ISRG NBHC NSC OSIS RMD SBCF SBUX SIVB WAL WDC

Friday (Jan 25)

• Morning: ABBV ABCB APD CL DHI ERIC HRC IBKC LEA MOG.A NEE

Discover Financial Services (DFS) reported earnings on Thur 25 Oct 2018 (a/h)

** charts after earnings **

 

Discover Financial Services reports EPS in-line, revs in-line

• Reports Q3 (Sep) earnings of $2.05 per share, in-line with the S&P Capital IQ Consensus of $2.05; revenues rose 7.9% year/year to $2.72 bln vs the $2.71 bln S&P Capital IQ Consensus.
• Direct Banking pretax income of $923 million in the quarter increased by $56 million from the prior year driven by higher net interest income, largely offset by an increase in the provision for loan losses and higher operating expenses.
• The 30+ day delinquency rate for credit card loans was 2.32%, up 18 basis points
  from the prior year and 16 basis points from the prior quarter. The credit card
  net charge-off rate was 3.14%, up 34 basis points from the prior year but down
  20 basis points from the prior quarter.

Long trade : DFS +10% (5/18)

• 8 days later

• 4 days later

Discover Financial Services (DFS) reported earnings on Tue 19 Apr 2016 (a/h)

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** 1 month later **

• Discover Financial Services (DFS):  above-consensus quarterly results with revenue rising 2.4% year-over-year

DFS — is it a buy?

• March 18:  Is DFS a buy?

• A month later: 

DFS — is it a buy?

• Dec. 24: Is DFS a buy?

• A month later:  NO

Discover (DFS) reported earnings on 6/18/12 (a/h)

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Discover Financial Services said its fiscal second-quarter profit fell 11% after accounting for rising loan-loss provisions. Total loans rose 8.6% from the prior year to $57.06 billion. Credit card loans grew 3.7% to $46.61 billion. Provision for loan losses was $232 million, up from $176 million a year ago and $152 million in the prior quarter.