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Discover Financial Services (DFS)
NYSE:DFS
Earnings Data
Report Date
Jul 16, 2025TBA Not Confirmed
Period Ending
2025 (Q2)Consensus EPS Forecast
3.49Last Year’s EPS
6.06Same Quarter Last Year
Moderate Buy
Based on 10 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Apr 23, 2025
|% Change Since: 2.16%
|Next Earnings Date:Jul 16, 2025
Earnings Call Sentiment|Positive
The earnings call was highlighted by significant positive developments including the approval of the merger with Capital One and strong financial performance with increased earnings per share and net income. However, there were challenges such as a decline in card sales and an increase in operating expenses and card net charge-offs.Company Guidance
During the first quarter of 2025, Discover Financial Services reported strong financial performance with a 31% increase in earnings per share compared to the previous year, attributed to a healthy net interest margin and solid credit performance. Net income rose to $1.1 billion, marking a 30% increase from the prior year, and the net interest margin expanded by 115 basis points to 12.18%. The card thirty-plus day delinquency rate improved, while the net charge-off rate decreased year over year. Average consumer deposits increased by 6% year over year, and direct-to-consumer deposits now account for 74% of total funding. Operating expenses rose by 1%, driven by a 10% increase in compensation costs due to higher wages and proactive retention measures. Despite a 2% decline in Discover Card sales, noninterest income grew by 3%, supported by increased net discount and interchange revenue. The common equity Tier one ratio improved by 60 basis points to 14.7%, and a quarterly cash dividend of $0.70 per share was declared. However, no updated guidance for 2025 trends was provided due to the upcoming merger with Capital One, expected to close on May 18, 2025.Merger Approval with Capital One
The Federal Reserve Board and Office of the Controller of the Currency approved the merger with Capital One, following approvals from the Delaware State Bank Commissioner and shareholders, with over 99% voting in favor.
Earnings Per Share Increase
Earnings per share increased by 31% compared to last year, driven by a healthy net interest margin and good credit performance.
Net Income Growth
Net income reported was $1.1 billion, up 30% from the prior year.
Net Interest Margin Expansion
Net interest margin ended the quarter at 12.18%, up 115 basis points from the prior year.
Increase in Consumer Deposits
Average consumer deposits were up 6% year over year.
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DFS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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DFS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Apr 23, 2025 | $178.69 | $187.46 | +4.91% |
| Jan 22, 2025 | $196.82 | $200.27 | +1.75% |
| Oct 16, 2024 | $146.43 | $149.33 | +1.98% |
| Jul 17, 2024 | $139.62 | $141.08 | +1.05% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Discover Financial Services (DFS) report earnings?
Discover Financial Services (DFS) is schdueled to report earning on Jul 16, 2025, TBA Not Confirmed.
What is Discover Financial Services (DFS) earnings time?
Discover Financial Services (DFS) earnings time is at Jul 16, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is DFS EPS forecast?
DFS EPS forecast for the fiscal quarter 2025 (Q2) is 3.49.
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