BUZZ-PREVIEW: Discover shares hit record; seen reporting Q4 rev, EPS increase

Shares in Discover Financial Services DFS.N up 2.4% on Wed hitting record high in session ahead of quarterly results due out after market close and quarterly conference call scheduled for before open on Thursday

Capital One COF.N announced all-stock ~$35.3 bln deal to buy DFS in 2024. Deal still under regulatory review with October announcement NY AG investigating if the deal violates NY antitrust law. But DFS rallied Nov. 6 after U.S. voted in President Trump on hopes his administration loosens regulations

COF shares also hit record on Wed after it reported Q4 profit jump late on Tuesday

Wall Street analysts see the credit card co reporting adj EPS of $3.25 vs $1.54 in the year-ago quarter on rev of $4.46 bln, up from $4.2 bln a year-ago, as per latest from LSEG

In last 8 quarters, DFS beat Street on adj EPS just 3 times while its rev beat estimates 7 times

DFS shares last traded at $194.24 vs median PT of $194, up from $156 in Oct; with LSEG showing 16 analyst ratings, 2 'strong buy,' 4 'buy,' and 10 'hold'

YTD shares in DFS up 12.2% after rising 54.1% in 2024; S&P 500 financial index .SPSY up 4% so far this year after 28.4% gain in 2024

(Reporting By Sinéad Carew)

((sinead.carew@thomsonreuters.com; +13322191897;))