Despite an expected dip in profit, analysts are generally optimistic about Discover Financial Services as it prepares to reports its second-quarter earnings on Wednesday, July 22, 2015. The consensus earnings per share estimate is $1.31 per share.
Over the past three months, the consensus estimate has sagged from $1.34. For the fiscal year, analysts are expecting earnings of $5.29 per share. Analysts project revenue to fall 9% year-over-year to $2.22 billion for the quarter, after being $2.45 billion a year ago. For the year, revenue is projected to come in at $8.96 billion.
The last two quarters have seen decreases in the company's net income. In the most recent quarter, profit dipped 9% year-over-year, and the figure dropped 33% in the fourth quarter.
The majority of analysts (82%) rate Disco as a buy. This compares favorably to the analyst ratings of eight similar companies, which average 68% buys.
Discover Financial Services is a credit card issuer in the United States and an electronic payment services company. SLM, also in the consumer financial services industry, will report earnings on Wednesday, July 22, 2015. Analysts are expecting earnings of $0.19 per share for SLM, up 90% from last year's earnings of $0.10 per share. Other companies in the consumer financial services industry with upcoming earnings release dates include: Visa, MasterCard and Nelnet.
Earnings estimates provided by Zacks.
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