Discover Earnings: Additional Compliance Costs Mar Otherwise Solid Quarter
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.