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.

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Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.