Discover Financial Analysts Cut Their Forecasts After Q4 Results
Portfolio Pulse from Avi Kapoor
Discover Financial Services (NYSE:DFS) reported a significant drop in Q4 profit by 62%, with earnings of $1.54 per share missing the expected $2.52. Revenue exceeded estimates at $4.196 billion. Loans grew by 15% year-over-year, and the net charge-off rate was 4.11%. The company declared semi-annual dividends for its Series C and D stock. Following the earnings report, DFS shares fell by 10.8%, and analysts from Barclays and HSBC revised their price targets downward, with HSBC also downgrading the stock from Buy to Hold.
January 19, 2024 | 12:25 pm
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Discover Financial's Q4 earnings miss and subsequent share price drop may lead to bearish sentiment in the short term. Analyst downgrades and lowered price targets could further pressure the stock.
The missed earnings and revenue figures are critical factors that investors consider when assessing a company's financial health. The reported 62% drop in profit and the share price decline of 10.8% are likely to negatively impact investor sentiment. Additionally, the downgrades and lowered price targets from analysts at Barclays and HSBC suggest a less favorable outlook for Discover Financial, which could lead to a decrease in stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100