Discover Financial Services (DFS) saw favorable momentum in its business in fiscal 2017 and in 4Q17. According to the company’s management, the momentum would also be visible in 2018, which could help the company in terms of return on equity (or ROE) as well as growth. Additionally, this momentum could prove beneficial for its shareholders.
Wall Street analysts gave a high estimate of $2.02 and a low estimate of $1.65 on Discover’s earnings per share (or EPS) for 1Q18. However, the average estimate is $1.81, which implies a rise compared to 1Q17.
With respect to Discover Financial’s 1Q18 revenues, Wall Street analysts have given a high estimate of $2.62 billion and a low estimate of $2.43 billion. However, the average estimate is $2.57 billion, representing a YoY rise. In 2018, the company’s Payment Services division is expected to be positively impacted by the increased use of digital tools in executing these transactions.
Discover is expected to benefit from the new US tax reform law, as the company would pay taxes at a lower rate. This would aid the company in making deployments with respect to its business operations that could help the company realize long-term growth.
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