Discover Stock Is Moving Lower Thursday: What's Happening?
Portfolio Pulse from Adam Eckert
Discover Financial Services (NYSE:DFS) stock declined after reporting Q4 earnings of $1.54 per share, missing analyst estimates of $2.52 per share. Revenue increased 13% YOY to $4.196 billion, and total loans grew by 15% to $128.4 billion. The net charge-off rate was 4.11%. Digital Banking pretax income decreased due to higher credit loss provisions and operating expenses, while Payment Services income rose due to higher PULSE revenue. Discover declared semi-annual dividends for its Series C and D stock and is positioned for growth in 2024.
January 18, 2024 | 2:13 pm
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Discover Financial's stock price fell after reporting lower-than-expected Q4 earnings, despite revenue growth and loan expansion. The company also declared dividends for its preferred stock.
The stock price of Discover Financial Services is likely to face downward pressure in the short term due to the significant earnings miss, which is a key driver of investor sentiment. However, the company's revenue growth and loan expansion, along with declared dividends, may provide some support to the stock price.
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