Discover Financial Services
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Company & Industry OverviewsDiscover Financial Services: Institutional Activity
Together, the top ten investors in Discover Financial Services (DFS) stock sold 0.4 million shares in the first quarter.
Earnings ReportAnalyzing Visa’s Valuation after Its Q2 Earnings
Visa (V) is trading at a forward PE ratio of 27.7x, which is higher than its five-year average PE ratio of 24.5x.
Earnings ReportVisa: Analysts Are Bullish before Its Earnings
Visa (V) has seen three upward revisions in its target price in April. On April 10, Cowen increased its target price for Visa from $161 to $177.
Earnings ReportHow Visa Stock Might Perform until Its Earnings
The implied volatility in Visa fell by ~12.5 percentage points from January 2 to 18.73% on April 12. Visa stock has risen ~21% during this period.
Earnings ReportWhat Might Drive Visa’s Q2 Earnings Growth?
According to data released on March 29, consumer spending rose 0.1% in January. Disposable personal income fell 0.2% in January.
Company & Industry OverviewsWhy Disney Is Spending $25 Million per Year on Staff Education
The Walt Disney Company is among those large American companies that have launched back-to-school programs for their employees.
Earnings ReportImproving Economy and Retail Sales to Boost Mastercard’s Q3 Results
A healthy job market and a steady hike in wages have increased the spending power of consumers.
Earnings ReportWhat Will Drive Mastercard’s Third-Quarter Earnings?
Mastercard (MA) is scheduled to report its third-quarter results on October 30.
Earnings ReportVisa’s Q4 Results to Gain from Improving Economy and Retail Sales
The US GDP grew 4.2% in the second quarter, which was almost double the 2.2% increase registered in the first quarter.
Earnings ReportHigher Payment Volumes to Drive Visa’s Q4 2018 Earnings
Visa (V) plans to report its Q4 2018 earnings on October 24. Analysts expect Visa to report EPS of $1.20, marking YoY growth of 33.3%.
Company & Industry OverviewsMastercard to Gain from Improving Economy and Rising Retail Sales
The Consumer Confidence Index increased to 133.4 in August from 127.9 in July—its highest reading since its October 2000 reading of 135.8.
Company & Industry OverviewsImproving GDP and Retail Sales Could Boost Visa’s Platform Usage
Improving GDP growth, a healthy job market, and steady wage growth have increased the disposable income of consumers, thereby giving them greater spending power.
FinancialsVisa Sizzles on Strong Digitization Trends and Improving Economy
Visa stock (V), which was around $78 at the beginning of 2017, now trades close to $143, a jump of over 83%.
Company & Industry OverviewsUnderstanding Visa’s Take on Contactless Payments
Visa (V) has been making efforts to increase the use of contactless payments in the United States after experiencing a positive response.
Company & Industry OverviewsHow Analysts Rate Mastercard
Analysts’ rating on Mastercard (MA) improved in July compared to June.
Company & Industry OverviewsMastercard Has Premium Valuations after Strong Q2 2018 Results
Mastercard (MA) has a price-to-earnings ratio of 28.04x on an NTM (next-12-month) basis compared to the peer average of 15.95x.
Company & Industry OverviewsHow Mastercard’s Gross Dollar Volumes and Net Revenues Trended
In the second quarter, Mastercard (MA) witnessed total gross dollar volumes (or GDV) of $1.5 trillion.
Earnings ReportDiscover Financial’s Q2 2018: Total Loans Grew 9% Year-over-Year
On July 26, Discover Financial Services (DFS) released its earnings report for the second quarter.
Earnings ReportVisa’s Payments Volumes Could Fuel Its Growth
On July 25, Visa (V) is scheduled to report its results for the third fiscal quarter. Analysts expect Visa to post an EPS of $1.09.
Earnings ReportMastercard’s Q2 Preview: Spending, Macro Data Could Be Drivers
Mastercard (MA) is set to release its second-quarter earnings report on July 26. What can we expect?
Earnings ReportCapital One’s Net Interest Margin Fell in the Second Quarter
Capital One Financial (COF) posted second-quarter results on July 19.
FinancialsA Look at Capital One’s Valuations
Capital One Financial Corporation’s (COF) PE (price-to-earnings) ratio is 8.77x on an NTM basis compared to its competitors’ average PE ratio of 20.79x.
FinancialsWhat to Expect from Payment Processing Companies in H2 2018
In the first quarter, Capital One’s net income totaled $1.3 billion while Discover’s net income reached $666.0 million.
Earnings ReportAmerican Express in Q2: Drivers Could Be Loan Growth, Spending
On July 18, American Express (AXP) is expected to report its Q2 2018. Analysts expect EPS to be $1.82 compared to $1.86 in the first quarter.
Earnings ReportCapital One’s Q2: Expectations Amid Trade Wars, Improved Economy
Capital One (COF) is expected to release its Q2 2018 earnings on July 19. Analysts expect EPS of $2.68, a YoY rise of 38.1%.
Company & Industry OverviewsWhat Factors Could Influence Analysts’ Ratings on Discover?
Growing trade tensions are a primary concern, as they could impact the performances of Discover Financial Services (DFS) and its peers.
Company & Industry OverviewsWhat Discover Financial Has in Mind Moving Forward
Discover Financial Services (DFS) generated net interest income amounting to $2.1 billion in the first quarter.
Company & Industry OverviewsWhat’s behind Mastercard’s Co-Brand Wins?
The economic and business environment prevailing in an economy affects the business fundamentals of payment processing giants like Visa (V) and Mastercard (MA).
FinancialsWhat’s Affected Consumer Finance Companies Recently?
On June 25, the Dow Jones Industrial Average saw strong downward pressure primarily due to escalating US-China trade tensions.
Company & Industry OverviewsHow Analysts View American Express Stock
In June, eight of the 32 analysts covering the stock have given it a “buy” rating, and two analysts have given it a “strong sell.”
Company & Industry OverviewsAmerican Express: What the Second Quarter Holds
The second quarter could be beneficial for American Express (AXP) due to an expected rise in consumer loans and transactions.
Company & Industry OverviewsAnalysts’ Views on Visa Stock
Analysts still love Visa (V) stock, primarily because of its strong outlook.
Company & Industry OverviewsA Look at Visa’s Valuation
Visa’s (V) NTM (next-12-month) and LTM (last-12-month) price-to-book ratios are 7.6x and 8.9x, respectively.
Company & Industry OverviewsAssessing Visa’s Growth Drivers
Visa’s (V) performance is expected to be primarily driven by spending trends, electronic payment adoption, and tapping into areas where many payments are still made in cash.
Company & Industry OverviewsDiscover’s Direct Banking Segment: More Credit Card Loans?
Discover Financial Services’ (DFS) Direct Banking segment generates most of its interest income from credit card loans.
Company & Industry OverviewsDiscover Financial Stock: Analysts’ Ratings
For Discover Financial, nine analysts recommend a “strong buy,” eight recommend a “hold,” and ten recommend a “buy” on the stock.
Company & Industry OverviewsDiscover’s Payment Services Division: What to Expect
At the end of the first quarter, Discover Financial’s Payment Services segment saw total volumes of $88.4 billion.
Company & Industry OverviewsA Look at Capital One’s Discounted Valuations
Capital One’s (COF) price-to-earnings ratio stood at ~9.1x on an NTM basis compared to the average of its peers of ~16.7x.
Company & Industry OverviewsWhat Could Make Analysts Warm Up to American Express Stock?
American Express is being covered by 33 analysts, 17 of whom have recommended “holds” and two of whom have recommended “strong sells” on the stock.
Company & Industry OverviewsUnderstanding the Trend in American Express’s Total Expenses
American Express (AXP) incurred total expenses amounting to $6.9 billion in the first quarter, implying a rise of 9% on a YoY (year-over-year) basis.
Company & Industry OverviewsAssessing Amex’s Global Merchant Services Segment’s Performance
The Global Merchant Services segment’s total revenue (after deducting interest expenses) amounted to $1.2 billion in the first quarter.
Company & Industry OverviewsA Look at AXP’s International Consumer and Network Services
American Express’s (AXP) International Consumer and Network Services segment is affected by consumer spending levels.
Company & Industry OverviewsHow Mastercard’s Second Quarter Could Shake Out
Wall Street analysts have given Mastercard (MA) an average EPS estimate of $1.5 for the second quarter, reflecting a year-over-year rise.
Company & Industry OverviewsThis Is Why Analysts Love Visa Stock
Analysts expect Visa to reach $140.09 in a year, implying a 7.2% rise from the stock’s current price of $130.72.
Company & Industry OverviewsHow Visa’s Valuation Compares
While Visa’s (V) NTM (next-12-month) price-to-book ratio is 7.4x, competitors’ average is 8.0x.
Company & Industry OverviewsWhat to Expect from Visa in Fiscal Q3 2018
Visa (V) is expected to post EPS (earnings per share) of $1.11 in the third fiscal quarter (ending in June), boosted by strong business fundamentals.
Company & Industry OverviewsWhy Visa Sees the US Market as Profitable
At the J.P. Morgan Global Technology, Media and Communications Conference, Visa (V) stated it would be targeting the US market’s significant untapped opportunities, which could boost growth.
Company & Industry OverviewsMastercard Benefited from Certain Regions
Mastercard benefited from the Latin America region. The region witnessed favorable momentum in consumer confidence and lower unemployment.
Earnings ReportMastercard’s Strong Results Beat Earnings and Revenue Estimates
Mastercard (MA) released its earnings report this morning. The company reported earnings per share or EPS of $1.50 in 1Q18.
Company & Industry OverviewsDiscover Financial Services: Assessing Analysts’ Ratings
Five analysts suggested a “hold,” one recommended a “strong sell,” and nine recommended a “strong buy” on DFS stock.
Company & Industry OverviewsA Look at Discover’s Discounted Valuations
Discover Financial Services (DFS) has a price-to-earnings ratio on an NTM (next-12-months) basis of ~8.9x, which highlights its lower valuations.
Company & Industry OverviewsDiscover Financial’s Cashback Checking Program
Discover’s enterprise-value-to-revenue ratio is ~4.0.
Company & Industry OverviewsA Look at Discover’s Direct Banking Segment
Discover Financial Services’ (DFS) Direct Banking segment generated pretax income of $3.4 billion in 2017.
Company & Industry OverviewsDiscover Financial: Tax Cuts and Payment Services Division
Discover Financial’s (DFS) Payment Services segment saw a rise in its pretax income from $107.0 million in 2016 to $145.0 million in 2017.
Company & Industry OverviewsWhat Does Discover Financial Have in Mind for 2018?
Discover’s 4Q17 operating margin stood at ~49.6% on a TTM (trailing-12-months) basis.
Company & Industry OverviewsWhat’s Expected from Discover Financial in 1Q18?
Wall Street analysts gave a high estimate of $2.02 and a low estimate of $1.65 on Discover’s earnings per share for 1Q18.
Company & Industry OverviewsA Look at Mastercard’s Net Revenue
Mastercard (MA) saw positive momentum in its business in 2017 thanks to the adoption of e-commerce.
Company & Industry OverviewsThis Move Could Increase Mastercard’s Transaction Volumes
On April 9, 2018, Mastercard (MA) made an announcement regarding the integration of its Masterpass service with the My Phillips 66 app.
Company & Industry OverviewsWhy Visa Has Premium Valuations
Visa’s (V) price-to-book ratio stands at 6.83x on a next-12-month basis, implying a premium valuation compared to its peer average of 3.09x.
Company & Industry OverviewsAn Analysis of These Components of Visa’s Net Operating Revenue
Of its total fiscal 1Q18 net operating revenue of $4.9 billion, Visa’s service revenue made up $2.1 billion, or 44.1%.
FinancialsHow Wall Street Views these Consumer Financial Companies
In February 2018, Discover Financial Services (DFS) was covered by 25 analysts, of whom nine suggested a “strong buy” and five recommended a “hold” on the stock.
Company & Industry OverviewsVisa Upgrades Its Terminals in Minneapolis
Visa (V) announced on February 2 the upgrade of various POS (point-of-sale) terminals for certain businesses in Minneapolis.
FinancialsWhy Mastercard Could Benefit from Wearable Devices
On February 22, Mastercard (MA) announced through a press release that around a quarter of Europeans support contactless payments through wearable devices like a keyring or smartwatch.
FinancialsBitcoin Participants Saw Duplicate Transactions
Worldpay (WP) and Visa (V) said Bitcoin participants who have executed transactions on Coinbase through debit or credit card may have come across duplicate transactions.
FinancialsVisa: 2018 Expectations and a Must-Read Recap
Visa (V) recorded strong fiscal 2017 with the help of positive momentum in cross-border volumes as well as payments volumes.
FinancialsVisa–Fraedom Acquisition to Benefit Business-to-Business Payments
Visa (V) announced its acquisition of Fraedom, which provides payment solutions for financial institutions.
Earnings ReportA Look at Mastercard’s Valuations
Wall Street analysts have given a one-year price estimate of $191.40 for Mastercard.
Earnings ReportDiscover Financial Services: What Analysts Are Saying
Twenty-six analysts are tracking Discover Financial Services (DFS) in January 2018. Six of them have given it a “hold” rating, and one is recommending a “strong sell.”
Earnings ReportBehind Discover Financial Services’ Discounted Valuations
Discover Financial Services (DFS) has a PE (price-to-earnings) ratio on an NTM (next 12-month) basis of 10.26x, while the average for its peers is 13.97x.
Earnings ReportDiscover Financial Services’ Direct Banking Segment in 4Q17
The Direct Banking segment of Discover Financial Services (DFS) generated pre-tax income of $870 million in 4Q17 compared to $868 million in 4Q16, which was a marginal rise.
Earnings ReportWhy Discover Financial’s Operating Expenses Rose Year-over-Year
In 4Q17, Discover Financial incurred total operating expenses of $1 billion compared to $897 million in 4Q16, which is a rise of 15%.
Company & Industry OverviewsAnalyzing Visa’s Balance Sheet
As of September 30, 2017, Visa (V) reported total assets of $67.9 billion compared to $64 billion as of September 30, 2016.
Company & Industry OverviewsA Look at Visa’s Key Growth Factors
Visa (V) posted a net income margin of ~35.0% in the last 12 months. American Express and Discover reported net income margins of ~13.9% and ~23.8%, respectively, in the same timeframe.
Earnings ReportUnderstanding Mastercard’s Higher Valuations
Mastercard (MA) has a PB (price-to-book) ratio of 17.24x on a next 12-month (or NTM) basis, which reflects its higher valuations.
Earnings ReportWhy Visa Saw Strong Performance in Fiscal 4Q17
Visa (V) announced its fiscal 2017 results and its fiscal 4Q17 earnings report on October 25. The consumer financial giant reported strong numbers in fiscal 4Q17.
Earnings ReportWhat Made American Express’s Total Revenues Rise in 3Q17?
After making adjustments related to foreign exchange, American Express (AXP) saw a YoY (year-over-year) rise of 8.0% in revenues for 3Q17.
Earnings ReportInside American Express’s Global Commercial Services Division
Total 3Q17 revenues for American Express’s (AXP) Global Commercial Services division were $2.6 billion in 3Q17 compared to $2.4 billion in 3Q16, reflecting a 6.0% rise.
Earnings ReportAmerican Express Has Strong 3Q17 Results: Raises Earnings Target
American Express (AXP) posted EPS (earnings per share) of $1.50 for 3Q17, which beat Wall Street’s estimate of $1.48. The company also beat analysts’ estimate for revenue.
Earnings ReportCapital One Is Focused on Share Repurchases
Capital One repurchased 5.4 million shares in 1Q15—representing 1% of the its total outstanding shares. Its strategic priorities for 2015 haven’t changed.
Earnings ReportHow Many Analysts Have Positive Views on Discover?
In October 2017, Discover Financial Services (DFS) is being covered by 24 analysts. Of those, only one analyst has rated DFS a “strong sell,” and none of them have given it a “sell” rating.
Earnings ReportDiscover’s Discounted Valuations: A Buying Opportunity?
Discover Financial Services’ (DFS) banking services have been ranked second in terms of customer satisfaction, according to a survey conducted by J.D. Power in August 2017.
Earnings ReportUnderstanding Discover Financial Services’ Loan Business
Discover Financial Services (DFS) has seen strong growth in loans in 2Q17 compared to 2Q16. For credit card loans, it saw an 8.0% growth in 2Q17 compared to 2Q16.
Earnings ReportWhy Discover Financial Services Could See Higher Volumes
Discover Financial Services (DFS) could see an increase in volumes in 3Q17, mainly due to Hurricanes Harvey and Irma.
Company & Industry OverviewsFactors That Led to a Decline in Discover’s Net Income in 1H17
Discover Financial’s employee compensation expenses rose 7% in 1H17 compared to 1H16.
Company & Industry OverviewsDiscover Misses Earnings Estimates but Beats Revenue Estimates
Discover Financial Services (DFS) posted earnings per share of $1.40 in 2Q17, which missed the analysts’ estimate of $1.45. DFS reported revenues of $2.42 billion in 2Q17, beating the analysts’ estimate of $2.40 billion.
Company & Industry OverviewsAnalyzing Visa’s Assets and Liabilities
As of September 30, 2016, Visa (V) has reported a total asset balance of $64.03 billion. As of June 30, 2017, the company managed to report a total asset balance of $64.00 billion.
Company & Industry OverviewsHow Visa Managed to Reduce Total Operating Expenses
Visa (V) reported total operating expenses of $5.56 billion from fiscal 1Q16 to fiscal 3Q16 and $4.57 billion from fiscal 1Q17 to fiscal 3Q17, representing a substantial fall of 18%.
FinancialsBehind Mastercard’s and Visa’s Revenues
Visa’s service revenues in fiscal 3Q17 were $1.9 billion, reflecting a 19.1% rise on a YoY (year-over-year) basis.
FinancialsInternational Business for American Express and Mastercard
American Express (AXP) witnessed a rise of 12.0% in its proprietary cards volume in 2Q17, which reflects a marginal increase of 1.0% from 1Q17.
ConsumerVisa, American Express, MasterCard Beat Analyst Estimates
Consumer financial companies such as American Express (AXP), Mastercard (MA), and Visa (V) beat analysts’ estimates for EPS (earnings per share) in 2Q17.
Earnings ReportVisa Collaborated with PayPal to Expand in Europe
Visa (V) reported strong net revenues in fiscal 3Q17 on the back of processed transactions, cross-border volumes, and payments volumes.
Earnings ReportVisa Saw Strong Growth in Payments Volumes
Visa (V) has been pursuing the Chinese market as a long-term opportunity, which could lead to an increase in its payments volume.
Earnings ReportHow Are Visa’s Dividends Trending?
Visa’s five-year average dividend yield (V) stood at 0.68%.
ConsumerWhat Led to Strong Numbers in Amex’s Global Merchant Services Division?
American Express’s (AXP) Global Merchant Services division witnessed an increase in its 2Q17 net income to $430 million, reflecting a rise of 15% from its 2Q16 net income.
Earnings ReportAmex’s International Consumer and Network Services Division
In 2Q17, American Express’s (AXP) International Consumer and Network Services division posted net income of $209 million, reflecting an 8% fall on a year-over-year basis.
Earnings ReportAmerican Express’s Full-Year Earnings Target Remains the Same
In 2Q17, American Express (AXP) posted earnings per share of $1.47, beating the analysts’ estimate of $1.44. AXP’s EPS resulted from increased YoY revenues and the credit quality of its existing customers.
Earnings ReportVisa’s Dividends: Growth Trajectory Is Expected to Continue
In fiscal 2016, Visa (V) declared dividends of $0.56 per share. Wall Street analysts expect Visa to declare dividends of $0.66 per share for fiscal 2017.
Earnings ReportVisa Expands Its Footprint in Europe
Visa (V) will report its fiscal 3Q17 earnings on July 20, 2017. Wall Street analysts expect Visa to report EPS of $0.81 per share—a decline of 5.8%.
Earnings ReportIs American Express a Stock for Value Investors?
Wall Street analysts have given a price target of $84.84 on Amex stock, which implies a rise of 0.6% from its current price level.
Earnings ReportWhy American Express Is Focusing on These Two Segments
For American Express, Wall Street analysts are expecting to see EPS (earnings per share) of $1.43 for 2Q17.