Discover (DFS, $123.86) beats Q2 earnings estimates; announces dividend hike
Discover Financial Services shares reported earnings for the second quarter.
The company posted net income of $5.55 a share, in the second quarter, surpassing the $4.11 a share expected by analysts polled by FactSet. The figure also reflects a bounce-back from a pandemic-induced loss of -$1.20 a share in the year-ago quarter.
Net interest income climbed +5% year-over-year to $2.3 billion. Revenue, net of interest expense, came in at $3.58 billion, beating analysts’ expectation of $2.9 billion.
Discover’s Board of Directors approved share repurchases of up to $2.4 Billion of common stock, and a +14% increase in the quarterly common stock dividend to $0.50 Per Share.
Notable companies
The most notable companies in this group are VISA (NYSE:V), Mastercard (NYSE:MA), American Express Company (NYSE:AXP), PayPal Holdings (NASDAQ:PYPL), Capital One Financial (NYSE:COF), United Rentals (NYSE:URI), Discover Financial Services (null:DFS), Synchrony Financial (NYSE:SYF), SLM Corp (NASDAQ:SLM), Bread Financial Holdings (NYSE:BFH).
Industry description
A leasing company (e.g. United Rentals, Inc. ) is typically the legal owner of the asset for the duration of the lease, while the lessee has operating control over the asset while also having some share of the economic risks and returns from the change in the valuation of the underlying asset. Per capita disposable income and corporate earnings or cash flow could be some of the critical metrics for this business – the higher the values of these metrics, the potentially greater ability of consumers/businesses to afford apartments/office spaces for rent. Other finance companies include credit/debit card payment processing companies (e.g. Visa Inc. and Mastercard), private label credit cards providers (e.g. Synchrony Financial) and automobile finance companies (e.g. Credit Acceptance Corporation).
Market Cap
The average market capitalization across the Finance/Rental/Leasing Industry is 13.11B. The market cap for tickers in the group ranges from 2.17K to 573.25B. V holds the highest valuation in this group at 573.25B. The lowest valued company is AZNVF at 2.17K.
High and low price notable news
The average weekly price growth across all stocks in the Finance/Rental/Leasing Industry was 3%. For the same Industry, the average monthly price growth was 5%, and the average quarterly price growth was 18%. FCRM experienced the highest price growth at 175%, while FTAI experienced the biggest fall at -16%.
Volume
The average weekly volume growth across all stocks in the Finance/Rental/Leasing Industry was 54%. For the same stocks of the Industry, the average monthly volume growth was 26% and the average quarterly volume growth was 134%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 52
P/E Growth Rating: 62
Price Growth Rating: 48
SMR Rating: 68
Profit Risk Rating: 67
Seasonality Score: 2 (-100 ... +100)
