Discover's adjusted revenue rose 7% year over year, to $2.76 billion. That was slightly above Wall Street's estimates for adjusted revenue of $2.75 billion. Discover's earnings per share, meanwhile, jumped 18%, to $2.15. That, too, bested analysts' expectations, which had been for earnings per share (EPS) of $2.00.
Discover grew its loan portfolio by 7%, to $88.7 billion. The company also continues to demonstrate an ability to generate strong returns while controlling risk. The credit card giant's first-quarter return on equity and total net charge-off rate checked in at 26% and 3.25%, respectively.
"Once again, this quarter showed the power of the Discover business model to deliver outstanding shareholder returns," CEO Roger Hochschild said in a press release. "Our solid execution on growth initiatives, effective credit risk management, and operating efficiency drove strong profitability."
Discover's stock is now up 35% so far in 2019. But with shares still trading for less than 10 times earnings, my colleague Matthew Cochrane believes this credit card titan remains a compelling buy.