Discover Financial Services DFS shares are trading lower in Wednesday’s after-hours session even though the company reported fourth-quarter financial results that topped estimates. Here’s a rundown of the results.
Q4 Results: Discover reported fourth-quarter revenue of $3.73 billion, which beat average analyst estimates of $3.66 billion, according to Benzinga Pro. The company turned in quarterly earnings of $3.77 per share, which beat estimates of $3.66 per share.
“Our outstanding results in 2022 were driven by record loan growth and margin expansion, factors that should sustain strong revenue growth into next year,” said Roger Hochschild, president and CEO of Discover.
Digital banking was down on a year-over-year basis reflecting a higher provision for credit losses and higher operating expenses.
Total loans were up 20% year-over-year and up 7% sequentially. Total operating expenses were up 15% year-over-year, driven primarily by higher expenses for employee compensation, marketing and professional fees.
The payment services segment was up on a year-over-year basis. Volume was up 4% year-over-year. Higher revenue was driven by lower net losses on equity investments in the quarter compared to the prior year’s quarter.
Discover’s board also declared a quarterly cash dividend of 60 cents per share payable on March 9 to holders of record at the close of business on Feb. 23.
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DFS Price Action: Discover shares are down 6.61% in after-hours at $95.50 at the time of writing, according to Benzinga Pro.
Photo: Courtesy of Discover.
Image and article originally from www.benzinga.com. Read the original article here.