By Davit Kirakosyan
Discover Financial Services (NYSE:DFS) shares fell more than 3% after-hours following the company’s reported Q3 results, with EPS of $3.54 coming in worse than the consensus estimate of $3.73. Revenue net of interest expense grew 25% year-over-year to $3.48 billion, beating the consensus estimate of $3.37 billion.
Digital Banking segment pretax income was $1.3 billion, $251 million lower year-over-year, reflecting a higher provision for credit losses and higher operating expenses, partially offset by increased revenue net of interest expense. Payment Services segment pretax income was $53 million, up $167 million year-over-year.
"Our outstanding third quarter results were characterized by robust loan growth and net interest margin, and strong credit metrics," said Roger Hochschild, CEO and President of the company.
Furthermore, the company’s Board of Directors declared a quarterly cash dividend of $0.60 per share of common stock, payable on December 8 to holders of record at the close of business on November 23.