Discover Financial Q1 Profit Rises, Easily Beating View (DFS)

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Credit card issuer Discover Financial Services ( DFS ) late Wednesday posted better-than-expected first quarter earnings results, helped by higher volumes and lower late payments.

The Riverwoods, IL-based company reported first quarter net income of $624 million, or $1.18 per share, compared with $459 million, or 84 cents per share, in the year-ago period.

Revenue jumped 6% from last year to $1.84 billion.

On average, Wall Street analysts expected a much smaller profit of 94 cents per share, albeit on matching revenue of $1.84 billion.

Discover Financial shares fell 34 cents, or -1.1%, in premarket trading Thursday.

The Bottom Line
Shares of Discover Financial Services ( DFS ) have a 1.26% dividend yield, based on last night's closing stock price of $31.64. The stock has technical support in the $28-$30 price area. The stock is trading at all-time highs.

Discover Financial Services ( DFS ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: DFS

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