RIVERWOODS, Ill. (AP) - Discover Financial Services on Tuesday reported better-than-expected revenue and net income in the second quarter, helped by loan growth and a tax benefit.
The Riverwoods, Illinois-based company said it earned $602 million, or $1.47 per share, for the three months ended in June, compared with $586 million, or $1.33 per share, a year earlier. The latest quarter includes a tax benefit of $44 million, or 11 cents per share, related to the resolution of certain tax matters.
The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $1.42 per share.
The credit card issuer and lender posted revenue of $2.22 billion in the period, which exceeded Street forecasts. Seven analysts surveyed by Zacks expected $1.8 billion.
Total loans grew 4 percent to $71.9 billion, with credit card loan volume growth of 4 percent.
Discover shares have climbed slightly more than 6 percent since the beginning of the year, while the Standard & Poor's 500 index has climbed almost 6 percent. On Tuesday, its shares closed at $56.98, a fall of 4 percent in the last 12 months. In after-hours trading, the stock slipped nearly 3 percent to $55.40.
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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on DFS at http://www.zacks.com/ap/DFS.
Published: Thu, Jul 21, 2016
