Zacks Research Has Optimistic Outlook of DFS Q2 Earnings

Discover Financial Services (NYSE:DFS) – Equities research analysts at Zacks Research lifted their Q2 2025 earnings per share (EPS) estimates for shares of Discover Financial Services in a report issued on Tuesday, March 4th. Zacks Research analyst D. Chatterjee now anticipates that the financial services provider will post earnings of $3.34 per share for the quarter, up from their previous estimate of $3.33. The consensus estimate for Discover Financial Services’ current full-year earnings is $13.88 per share. Zacks Research also issued estimates for Discover Financial Services’ FY2027 earnings at $17.42 EPS.

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, beating analysts’ consensus estimates of $3.13 by $1.98. Discover Financial Services had a net margin of 17.29% and a return on equity of 26.18%.

Several other brokerages also recently issued reports on DFS. Barclays raised their price target on Discover Financial Services from $186.00 to $209.00 and gave the company an “overweight” rating in a research report on Friday, January 24th. StockNews.com downgraded Discover Financial Services from a “buy” rating to a “hold” rating in a research note on Friday, January 24th. Wells Fargo & Company lifted their price target on Discover Financial Services from $185.00 to $214.00 and gave the stock an “equal weight” rating in a research report on Friday, January 24th. JPMorgan Chase & Co. increased their price objective on Discover Financial Services from $146.00 to $169.00 and gave the company a “neutral” rating in a research report on Friday, January 24th. Finally, Truist Financial raised their price objective on shares of Discover Financial Services from $233.00 to $262.00 and gave the stock a “buy” rating in a research note on Monday, January 27th. Nine investment analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $191.91.

Discover Financial Services Stock Performance

NYSE:DFS opened at $172.10 on Wednesday. The firm has a market capitalization of $43.30 billion, a PE ratio of 10.78, a PEG ratio of 1.51 and a beta of 1.46. The company has a current ratio of 1.09, a quick ratio of 1.03 and a debt-to-equity ratio of 1.09. Discover Financial Services has a 1 year low of $119.31 and a 1 year high of $205.76. The firm’s fifty day simple moving average is $189.17 and its 200 day simple moving average is $166.66.

Discover Financial Services Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, June 6th. Investors of record on Friday, May 23rd will be given a $0.70 dividend. The ex-dividend date is Friday, May 23rd. This represents a $2.80 annualized dividend and a yield of 1.63%. Discover Financial Services’s dividend payout ratio (DPR) is currently 17.54%.

Institutional Investors Weigh In On Discover Financial Services

A number of institutional investors have recently bought and sold shares of DFS. National Pension Service lifted its holdings in shares of Discover Financial Services by 14.8% during the 3rd quarter. National Pension Service now owns 439,756 shares of the financial services provider’s stock worth $61,693,000 after acquiring an additional 56,814 shares during the period. Nomura Asset Management Co. Ltd. raised its position in Discover Financial Services by 10.5% in the third quarter. Nomura Asset Management Co. Ltd. now owns 115,487 shares of the financial services provider’s stock worth $16,202,000 after purchasing an additional 10,946 shares in the last quarter. Brookstone Capital Management acquired a new position in Discover Financial Services in the fourth quarter worth about $282,000. Meyer Handelman Co. bought a new position in Discover Financial Services during the fourth quarter worth about $239,000. Finally, Janney Montgomery Scott LLC acquired a new stake in Discover Financial Services during the third quarter valued at approximately $2,415,000. Institutional investors and hedge funds 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.