Discover earnings beat estimates, shares rise
Discover Financial Services
Net income for the fiscal third quarter, ended August 31, was $577.4 million, or $1.07 per share, compared with $180.1 million, or 37 cents per share, a year earlier.
The latest results included a after-tax gain of $287 million related to an antitrust settlement with Visa
Excluding the one-time gain, the Riverwoods, Illinois-based company posted a profit of 52 cents per share. On that basis, analysts had expected a loss of 12 cents per share, according to Reuters Estimates.
Discover's charge-off rate -- loans it does not expect to be repaid -- climbed to 8.39 percent in the third quarter from 7.79 percent in the second quarter but was well below rates at its bigger rivals.
Discover shares rose 2.93 percent to $15.77 in premarket trading.
(Reporting by Juan Lagorio; editing by John Wallace)
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