PREVIEW: Discover shares hit record; seen reporting Q4 rev, EPS increase

Discover Financial Services

22/01/2025 17:42

** Shares in Discover Financial Services  DFS.N  up 2.4% on Wed
hitting record high in session ahead of quarterly results due
out after market close and quarterly conference call scheduled
for before open on Thursday
     ** Capital One  COF.N  announced all-stock ~$35.3 bln deal
to buy DFS in 2024. Deal still under regulatory review with
October announcement NY AG investigating if the deal violates NY
antitrust law. But DFS rallied Nov. 6 after U.S. voted in
President Trump on hopes his administration loosens regulations
    ** COF shares also hit record on Wed after it reported Q4
profit jump late on Tuesday
    ** Wall Street analysts see the credit card co reporting adj
EPS of $3.25 vs $1.54 in the year-ago quarter on rev of $4.46
bln, up from $4.2 bln a year-ago, as per latest from LSEG  
    ** In last 8 quarters, DFS beat Street on adj EPS just 3
times while its rev beat estimates 7 times
    ** DFS shares last traded at $194.24 vs median PT of $194,
up from $156 in Oct; with LSEG showing 16 analyst ratings, 2
'strong buy,' 4 'buy,' and 10 'hold'
    ** YTD shares in DFS up 12.2% after rising 54.1% in 2024;
S&P 500 financial index  .SPSY  up 4% so far this year after
28.4% gain in 2024

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com; +13322191897;))