Hsbc Global Res Has Negative Estimate for DFS Q1 Earnings

Discover Financial Services (NYSE:DFS) – Equities researchers at Hsbc Global Res lowered their Q1 2025 EPS estimates for shares of Discover Financial Services in a report issued on Tuesday, February 4th. Hsbc Global Res analyst S. Martinez now expects that the financial services provider will earn $2.81 per share for the quarter, down from their prior estimate of $3.08. The consensus estimate for Discover Financial Services’ current full-year earnings is $13.39 per share. Hsbc Global Res also issued estimates for Discover Financial Services’ Q2 2025 earnings at $3.26 EPS, Q1 2026 earnings at $3.18 EPS, Q2 2026 earnings at $3.87 EPS, Q3 2026 earnings at $4.07 EPS and Q4 2026 earnings at $4.17 EPS.

Several other brokerages also recently weighed in on DFS. Evercore ISI upped their target price on Discover Financial Services from $156.00 to $163.00 and gave the stock an “in-line” rating in a research note on Wednesday, October 30th. Barclays increased their price objective on shares of Discover Financial Services from $186.00 to $209.00 and gave the company an “overweight” rating in a report on Friday, January 24th. StockNews.com cut shares of Discover Financial Services from a “buy” rating to a “hold” rating in a research note on Friday, January 24th. Royal Bank of Canada lifted 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. Finally, Truist Financial raised their target price on Discover Financial Services from $233.00 to $262.00 and gave the company a “buy” rating in a research report on Monday, January 27th. Ten investment analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $182.64.

Discover Financial Services Stock Performance

Shares of NYSE DFS opened at $202.91 on Friday. The company has a market capitalization of $50.99 billion, a PE ratio of 12.71, a price-to-earnings-growth ratio of 0.64 and a beta of 1.46. 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 company’s fifty day moving average price is $182.48 and its 200 day moving average price is $158.22. Discover Financial Services has a 1 year low of $104.08 and a 1 year high of $205.76.

Discover Financial Services (NYSE:DFS) last posted its 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%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. DiNuzzo Private Wealth Inc. boosted its stake in shares of Discover Financial Services by 506.5% during the 3rd quarter. DiNuzzo Private Wealth Inc. now owns 188 shares of the financial services provider’s stock valued at $26,000 after buying an additional 157 shares during the last quarter. Point72 Asia Singapore Pte. Ltd. bought a new position in shares of Discover Financial Services during the third quarter worth about $30,000. SBI Securities Co. Ltd. bought a new stake in Discover Financial Services in the fourth quarter valued at about $33,000. Grove Bank & Trust raised its stake in Discover Financial Services by 78.1% during the fourth quarter. Grove Bank & Trust now owns 203 shares of the financial services provider’s stock valued at $35,000 after buying an additional 89 shares in the last quarter. Finally, Bfsg LLC bought a new position in Discover Financial Services during the 4th quarter worth approximately $35,000. 86.94% of the stock is owned by hedge funds and other institutional investors.

Discover Financial Services Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, June 6th. Stockholders of record on Friday, May 23rd will be issued a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.38%. The ex-dividend date of this dividend is Friday, May 23rd. Discover Financial Services’s payout ratio is currently 17.54%.

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.