The earnings call reflected a strong financial performance with a significant increase in net income and strategic advancements in community investments and customer satisfaction. However, challenges such as a decrease in card sales, increased operating expenses, and regulatory scrutiny were also highlighted.

Company Guidance

During Discover's Q3 2024 earnings call, the company reported strong financial performance with a net income of $965 million, up 41% from the previous year, driven by revenue growth from modestly higher loan balances and net interest margin expansion. The net interest margin reached 11.38%, an increase of 43 basis points from the prior year. Discover's card receivables increased by 3%, while personal loans rose by 9% year-over-year. The company recognized a $70 million gain from the sale of the first tranche of its private student loan portfolio, with 55% of the portfolio sold to date. Operating expenses increased by 16% year-over-year, with significant contributions from higher compensation costs, technology investments, and merger-related expenses. Discover's customer satisfaction remained high, ranking #2 among U.S. credit card issuers by J.D. Power for the fifth consecutive year. The company also revised its 2024 outlook, expecting loan growth to decline to low to mid-single digits and tightening its net interest margin range to 11.2% to 11.4%.

Strong Financial Performance

Net income for the third quarter was reported at $965 million, up 41% from the prior year, driven by revenue growth and net interest margin expansion.

Customer Satisfaction Achievement

Discover ranked #2 in customer satisfaction among U.S. credit card issuers by J.D. Power for the fifth consecutive year.

Community Investment Milestones

Significant investments in community facilities, including the grand opening of Whitehall, Ohio customer care and community center, and achieving 1,000 active jobs in Chicago's Chatham neighborhood.

Increase in Personal Loans

Personal loans were up 9% from the prior year, indicating strong demand for debt consolidation with an average FICO score above 750 for new accounts.

Capital Management and Dividend

Common equity Tier 1 ratio increased to 12.7%, supported by earnings and student loan sale with a declared quarterly cash dividend of $0.70 per share.

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Discover Financial Services (DFS) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DFS Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jan 15, 2025	2024 (Q4)	3.21 / -	1.54	―	―	―
Oct 16, 2024	2024 (Q3)	3.48 / 3.69	2.59	42.47% (+1.10)
Jul 17, 2024	2024 (Q2)	3.10 / 6.06	3.54	71.19% (+2.52)
Apr 17, 2024	2024 (Q1)	2.96 / 1.10	3.58	-69.27% (-2.48)
Jan 17, 2024	2023 (Q4)	2.49 / 1.54	3.77	-59.15% (-2.23)
Oct 18, 2023	2023 (Q3)	3.17 / 2.59	3.54	-26.84% (-0.95)
Jul 19, 2023	2023 (Q2)	3.67 / 3.54	3.96	-10.61% (-0.42)
Apr 19, 2023	2023 (Q1)	3.92 / 3.58	4.22	-15.17% (-0.64)
Jan 18, 2023	2022 (Q4)	3.65 / 3.77	3.64	3.57% (+0.13)
Oct 24, 2022	2022 (Q3)	3.71 / 3.54	3.54	0.00% (0.00)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DFS Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 16, 2024	$146.93	$149.85	+1.99%
Jul 17, 2024	$140.10	$141.56	+1.04%
Apr 17, 2024	$118.11	$122.43	+3.66%
Jan 17, 2024	$106.52	$95.02	-10.80%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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