Evercore ISI Remains Bullish on Discover Financial Services (DFS) Following 2Q EPS Miss

Evercore ISI reiterated a Buy rating and $59.00 price target on Discover Financial Services (NYSE: DFS) following the company's 2Q earnings report. DFS reported EPS of $1.36, below the consensus estimates of $1.40. The miss was attributed to higher than expected expenses, lower NII, and a higher LLP.

Analyst John Pancari commented, "DFS reported 2Q16 EPS of $1.36, below our estimate of $1.41 and consensus of $1.40. Downside to our estimate was due to higher than expected expenses (-$0.03), lower NII (-$0.02), and higher LLP (- $0.01), partly offset by a lower tax rate (+$0.01). Bottom line: While EOP balance sheet trends and the 2Q NIM was solid, softer average balance sheet growth combined with higher marketing expenses more than offset these benefits. Going forward, mgmt suggested that improved balance sheet trends could be sustained, however, this may be partly mitigated by ongoing marketing expense and rewards cost."

For an analyst ratings summary and ratings history on Discover Financial click here. For more ratings news on Discover Financial click here.

Shares of Discover Financial closed at $56.98 yesterday.

You May Also Be Interested In

• Keefe, Bruyette & Woods Reiterates Outperform Rating on Discover Financial (DFS)
• Cleveland Research Upgrades Dynatrace Inc. (DT) to Buy, 'optimism underlying fundamentals are likely to support upside'
• Rentokil Initial (RTO) PT Lowered to $35 at Oppenheimer