Discover Financial Services (DFS) Misses Q4 EPS by 16c

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Evercore ISI Keeps Discover Financial (DFS) at BUY on Valuation

January 28, 2016 7:22 AM EST

Evercore ISI analyst, John Pancari, remains constructive on shares of Discover Financial (NYSE: DFS) due to the higher than average returns, low risk profile and (now) low valuation.

DFS reported 4Q15 EPS of $1.14, which compares to cons of $1.30, the analyst was below consensus at $1.25. Downside was driven by higher LLP (-$0.09), lower fees (-$0.02), and lower than expected NII (-$0.01), partly offset by a lower tax rate (+$0.01).

4Q results were marked by a higher LLP than we expected given seasoning of credit card loan growth at loss rates above the... More