Wolfe Research Issues Pessimistic Estimate for DFS Earnings

Discover Financial Services (NYSE:DFS) – Wolfe Research cut their Q2 2025 earnings per share estimates for shares of Discover Financial Services in a report issued on Wednesday, April 2nd. Wolfe Research analyst B. Carcache now forecasts that the financial services provider will post earnings of $3.55 per share for the quarter, down from their previous forecast of $3.57. The consensus estimate for Discover Financial Services’ current full-year earnings is $13.88 per share. Wolfe Research also issued estimates for Discover Financial Services’ Q4 2025 earnings at $3.74 EPS, Q1 2026 earnings at $3.67 EPS, Q2 2026 earnings at $3.95 EPS, Q3 2026 earnings at $3.87 EPS and Q4 2026 earnings at $4.01 EPS.

Other research analysts have also recently issued reports about the stock. StockNews.com cut shares of Discover Financial Services from a “buy” rating to a “hold” rating in a report on Wednesday, April 2nd. Truist Financial reduced their price target on Discover Financial Services from $262.00 to $219.00 and set a “buy” rating for the company in a report on Friday, March 21st. Royal Bank of Canada upped their price objective on Discover Financial Services from $193.00 to $210.00 and gave the stock a “sector perform” rating in a report on Friday, January 24th. Keefe, Bruyette & Woods raised their target price on Discover Financial Services from $170.00 to $232.00 and gave the company an “outperform” rating in a report on Monday, December 9th. Finally, UBS Group raised shares of Discover Financial Services from a “neutral” rating to a “buy” rating and upped their price target for the stock from $150.00 to $239.00 in a research note on Monday, January 13th. Seven analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $192.40.

Discover Financial Services Stock Down 9.0 %

Shares of Discover Financial Services stock opened at $146.77 on Monday. Discover Financial Services has a one year low of $119.31 and a one year high of $205.76. The company has a market cap of $36.93 billion, a P/E ratio of 9.20, a PEG ratio of 1.51 and a beta of 1.20. The company has a debt-to-equity ratio of 1.09, a quick ratio of 1.03 and a current ratio of 1.09. The firm has a fifty day moving average of $181.35 and a two-hundred day moving average of $171.43.

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 the consensus estimate of $3.13 by $1.98. Discover Financial Services had a return on equity of 26.18% and a net margin of 17.29%.

Discover Financial Services Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 6th. Shareholders of record on Friday, May 23rd will be issued a dividend of $0.70 per share. The ex-dividend date is Friday, May 23rd. This represents a $2.80 annualized dividend and a yield of 1.91%. Discover Financial Services’s dividend payout ratio (DPR) is currently 17.54%.

Institutional Trading of Discover Financial Services

Several institutional investors and hedge funds have recently modified their holdings of the business. Quent Capital LLC lifted its stake in Discover Financial Services by 35.1% in the 1st quarter. Quent Capital LLC now owns 1,989 shares of the financial services provider’s stock valued at $339,000 after buying an additional 517 shares in the last quarter. Sage Capital Advisors llc acquired a new position in shares of Discover Financial Services in the first quarter worth $4,515,000. Versant Capital Management Inc lifted its position in shares of Discover Financial Services by 23.8% in the first quarter. Versant Capital Management Inc now owns 1,597 shares of the financial services provider’s stock valued at $273,000 after acquiring an additional 307 shares in the last quarter. Mascagni Wealth Management Inc. acquired a new stake in shares of Discover Financial Services during the fourth quarter valued at $41,000. Finally, CIBRA Capital Ltd purchased a new stake in Discover Financial Services during the 4th quarter worth about $4,855,000. Hedge funds and other institutional investors own 86.94% of the company’s stock.

Discover Financial Services Company Profile

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.