Home Markets What To Expect From Discover Financial Stock In Q2? — Trefis

What To Expect From Discover Financial Stock In Q2? — Trefis

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Discover Financial (NYSE: DFS) is scheduled to report its fiscal Q2 2021 results on Thursday, July 22. We expect Discover Financial to miss the consensus estimates for revenues and earnings. While the credit card giant managed to top the consensus estimates in the last quarter, its revenues decreased on a year-on-year basis. The drop was due to lower net interest income (NII) followed by some decline in the non-interest revenues. On the flip side, the company posted strong growth in its profitability, thanks to the drop in provisions for credit losses. We expect the NII to continue to suffer in the second quarter, however, non-interest revenues are likely to benefit from some recovery in the consumer spending levels. Further, provisions are likely to see a favorable decrease in the second quarter, too.

Our forecast indicates that Discover Financial’s valuation is around $108 per share, which is 7% below the current market…

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