Discover Financial Services

Discover 2Q earnings drop 7 percent; beats forecasts

Discover Financial Services on Wednesday reported a 7 percent drop in second-quarter earnings, due largely to higher expenses. The credit card and lending company's net income allocated to common shareholders was $586 million, versus $630 million a year earlier. On a per-share basis, Discover said it had profit of $1.33, down from $1.35 a share a year earlier. The results barely topped Wall Street expectations. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of $1.32 per share. Revenue at Discover was effectively flat from the year before, at $2.18 billion in the period. Total loans were up 5 percent to $69 billion. However, the amount of...