Discover Beats Profit Expectations, While Net Interest Income And Loan Growth Miss
Discover Financial Services reported on Tuesday first-quarter earnings of $586 million, or $1.28 a share, down from $631 million, or $1.31 a share, in the year-earlier period, but above the FactSet consensus of $1.27 a share. The credit-card company said revenue rose to $2.17 billion from $2.08 billion, matching the FactSet consensus. Net interest income rose to $1.63 billion from $1.56 billion, just shy of the FactSet consensus of $1.65 billion, as net interest margin narrowed by 0.18 percentage points to 9.7%. Total loans grew 5.9% to $67.6 billion, below the FactSet consensus of $68.26 billion. The stock, which slipped 0.5% in after-hours trade, has lost 9.5% year to date through Tuesday's close, while the S&P 500 has gained 1.9%.
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