Discover Financial Services

DFS: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$269.00	Gjjqtwj	Ntdbfck

Discover Earnings: Additional Compliance Costs Mar Otherwise Solid Quarter

Michael Miller

Apr 18, 2024

Narrow-moat-rated Discover Financial Services reported decent first-quarter results that were affected by additional losses associated with its product compliance issues. Earnings per share fell 69% from last year and 28.6% from last quarter to $1.10, while revenue increased 13% from last year to $4.2 billion. These results translate to a return on equity of 8%, well below the bank’s historical average.

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