Discover Financial (DFS) Beats On Earnings, Shares Climb

Discover Financial Services (DFS – Analyst Report) reported its third-quarter 2015 earnings results after the closing bell today. Last quarter, Discover Card operator posted a positive earnings surprise of 0.76%.

This year, Discover has launched some initiatives that might have had an impact on today's report. A partnership with Creditcall and a strategic agreement with card issues Elo highlighted Discover's ambition to expand its reach. Also, Discover has given card holders the option of linking their cards to (AAPL) Pay.

However, the company has been faced with marketing and development expenses, increased competition, regulatory changes, and weak volumes in its Payment Services segment. Details of the report should indicate whether these negatives outweighed the positives mentioned above.

Currently, DFS has a Zacks Rank #3 (Hold), but we could see movement in the rankings following today's earnings announcement. We have highlighted some of the key figures from the report below:

Earnings: DFS posted an EPS of $1.38, beating the Zacks Consensus Estimate of $1.34.

Revenue: Discover announced revenues of $2.19 billion, which beat our consensus estimate of $1.835 billion.

Key Stats to Note: Payment Services transaction dollar volume for the segment was $46.0 billion, down 7% from last year.

Stock Price: Shares of DFS closed down about 0.5% on the day. In afterhours trading, DFS rebounded and is currently up over 1.5% on the day.

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