Discover 3Q profit slips, but tops Wall Street view
ASSOCIATED PRESS September 27, 2012 8:16AM
BOSTON — Discover Financial Services says its net income fell 3 percent in its fiscal third quarter, but the result beat Wall Street expectations as credit card use increased and more customers paid off their card balances on time.
Its shares rose 3.6 percent to $38.35 in premarket trading.
The Riverwoods, Ill.-based company on Thursday reported net income of $621 million, or $1.21 per share, for the quarter ended Aug. 31, after paying preferred shareholders. That was down from $642 million, or $1.18 per share, in the year-ago quarter, when Discover had a greater number of common shares outstanding.
The latest quarter’s earnings topped the consensus forecast of analysts surveyed by FactSet, who had expected $1.03 per share.
Revenue rose nearly 10 percent to $1.96 billion. Analysts forecast $1.9 billion, on average.