Discover Financial stock slides after Q2 earnings fall short of consensus (NYSE:DFS)

Discover Financial Services (NYSE:DFS) stock sank 11% in after-hours trading on Wednesday after the credit card company posted Q2 earnings that fell far short of the Wall Street consensus as its provision for credit losses continued to climb and net charge-offs increased, signaling more normal card delinqeuncy rates.

Q2 EPS of $3.54, trailing the average analyst estimate of $3.67, fell from $3.58 in Q1 2023 and from $3.93 in Q2 2022. Revenue, net of interest expense, was $3.87B, missing the $3.89B consensus, and rose from $3.74B in the prior quarter and $3.21B a year ago.