Discover Financial Services (DFS) Tops Q3 EPS by 3c

Discover Financial Services (NYSE: DFS) reported Q3 EPS of $1.37, $0.03 better than the analyst estimate of $1.34. Revenue for the quarter came in at $2.2 billion versus the consensus estimate of $2.2 billion.

Other highlights:

• Total loans grew $4.6 billion, or 7.4%, from the prior year to $67.4 billion.
• Credit card loans grew $3.3 billion, or 6.6%, to $53.7 billion and Discover card sales volume increased 5.8% from the prior year.
• Net charge-off rate for credit card loans increased 11 basis points from the prior year to 2.16% and the delinquency rate for loans over 30 days past due increased 4 basis points to 1.71%.
• Payment Services pretax income was $28 million. Transaction dollar volume for the segment was $49.6 billion, up 2% from the prior year.

"I am very pleased with Discover's results this quarter, which were driven by robust card loan growth, strong revenue growth and near historically low credit performance resulting in continued better than industry returns," said David Nelms, chairman and CEO of Discover. "Our Direct Banking strategy continues to work as we grow consumer loans faster than our peers and return meaningful amounts of capital back to our shareholders."

For earnings history and earnings-related data on Discover Financial Services (DFS) click here.

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