DFS Earnings

DFS reported its FY2025Q1 earnings on 2025-04-23, showcasing a revenue of 4.25B against an estimate of 4.21B, resulting in a 0.99% surprise. The EPS was 4.25, surpassing the expected 3.3 by 28.79% . The stock experienced a 4.91% price change on the earnings day and a 3.74% change over the next five days, reflecting market reactions to the results.

Following DFS's FY2025Q1 earnings announcement on 2025-04-23, the stock price moved by 4.91% on the day of the release. Over the subsequent five days, it saw a 3.74% change. Historically, DFS's stock price tends to shift by an average of -5.11% in the 10 days leading up to earnings and -0.70% in the 10 days following, providing insight into potential market.

For 2025/Q2, analysts estimate DFS’s annual revenue to reach 4.32B, while the EPS is projected at 3.54. These estimates reflect recent revisions, with revenue estimates revised Revenue No Change by 0% and EPS estimates No Change by 0% over the past three months, indicating analyst expectation in the company’s performance.

The correlation between DFS's stock price and earnings forecast revisions shows that positive revisions in revenue or EPS often strengthen the stock’s fundamentals. Over the past three months, revenue estimates for FY2025 were No Change by 0%, while EPS estimates moved No Change by 0% . This trend suggests that price dips could present buying opportunities for investors.

Based on historical trends, DFS's stock price typically moves by -5.11% in the 10 days before its earnings and -0.70% in the 10 days after. For the upcoming 2025/Q2 earnings, analysts expect an EPS of 3.54 and revenue of 4.32B.

The earnings call indicates strong financial performance with a 30% increase in net income and a significant rise in net interest margin. The merger with Capital One is expected to enhance competitive positioning. Despite macroeconomic uncertainties and operational risks, the company has regulatory approvals and a share repurchase program in place. The lack of guidance for 2025 due to the merger is a slight negative, but overall sentiment is positive given the strategic initiatives and financial health.