What Will Drive Discover’s Top Line Going Forward?
As we have written previously, over the last five years, growth in Discover’s earnings per share has been inorganic. The company’s expense allocation over the same period has been rather unusual compared to its peers with its expense growth driven by increase in provision for losses on credit card loans and other loans as opposed to increased spending on rebates, incentives and marketing and promotions.
Over the last three years, Discover’s revenue growth has been slow. Over the next three year period, we expect growth to be slightly faster with revenue from credit card income driving the company’s top line growth over this period. We expect close to 56% of the company’s revenue growth over this period to come from increase in credit card income.
Have more questions about Discover? See the links below:
- How Much Did Discover’s Revenue & Net Profit Grow In The Last Five Years?
- How Much Can Discover’s Revenue Grow In The Next Five Years?
- What Is Discover’s Fundamental Value Based On Expected 2016 Results?
- How Has Discover’s Revenue Composition Changed In The Last Five Years?
Notes:
- Up 14% YTD, What’s Next For Discover Financial Stock?
- Discover Financial Stock Is Undervalued
- Discover Financial Stock Is Fairly Priced At The Current Levels
- Discover Financial Stock To Edge Past The Revenue Consensus In Q1
- Discover Financial Stock Is Attractive At The Current Levels
- Discover Financial Stock To Beat The Earnings Consensus In Q4?
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