Discover Shares Slip After Revenue Falls Short Of Estimates

By Sue ChangMarketsMarketWatch Pulse

Shares of Discover Financial Services slid in Tuesday's extended session after the credit-card company posted mixed quarterly results--beating on earnings but falling short on revenue. Discover reported its second-quarter earnings rose to $616 million, or $1.47 a share, from $586 million, or $1.33 a share, a year earlier. The latest quarter's results include a non-recurring tax benefit of $44 million. Revenue net of interest expense edged up to $2.22 billion from $2.18 billion while total loans grew 4% to $71.9 billion and credit card loans rose 4% to $57.2 billion. Analysts surveyed by FactSet had forecast earnings of $1.40 a share and revenue of $2.23 billion. Discover shares were off 0.3% after hours.

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