© Stocksak. Discover Financial Services Shares Drop 3% on Q3 EPS Miss, While Revenues Beat Estimates
By Davit Kirakosyan
Discover Financial Services (NYSE:) shares fell more than 3% after-hours following the company’s reported , with EPS of $3.54 coming in worse than the consensus estimate of $3.73. Revenue net of interest expense increased 25% year-overyear to $3.48 Billion, beating the consensus estimate at $3.37 Billion.
Pretax income from Digital Banking was $1.3 billion, $251 Million lower year-over–year. This is due to a higher provision of credit losses and higher operating costs, partially offset by higher revenue net interest expense. Pretax income from Payment Services was $53 million, an increase of $167 million over the previous year.
Roger Hochschild, CEO/President of the company, stated, “Our outstanding third quarter results were characterised by robust loan growth, net interest margin and strong credit metrics.”
Furthermore, the company’s Board of Directors declared a quarterly cash dividend of $0.60 per share of common stock, payable on December 8 to holders of record at the close of business on November 23.