Discover Financial Services Dips on Earnings Miss
Investors seem to be getting used to the fact that banks and other financial service providers are going to post significantly reduced net profits, or even losses, as they provision for sharp increases in credit losses.
This has been the dynamic for most of these companies during this reporting season, and it was no different for Discover Financial Services (NYSE: DFS), which reported its first-quarter results late Wednesday.
For the quarter, the company's net revenue rose by 5% over the same period last year to $2.89 billion, on total loans that rose at the same rate. On the bottom line, Discover flipped to a net loss of $61 million, or $0.25 per share, from a profit of $726 million ($2.15).
Source Fool.com
