Discover Financial Services DFS reported fourth-quarter 2020 adjusted earnings of $2.59 per share, beating the Zacks Consensus Estimate of $2.37 by 9.3%. Moreover, the bottom line improved 15% year over year owing to a solid performance by its Direct Banking business. The company witnessed strong growth in its digital banking model.Operational UpdateIn the reported quarter, the company’s revenues — net of interest expenses — dropped 4% year over year to $2.8 billion due to lower other income. However, the top line beat the Zacks Consensus Estimate by 0.1%.Total loans declined 6% year over year to $90.4 billion.Interest expenses of $383 million decreased 37.7% year over year.Total operating expenses increased 8% to $1.3 billion due to higher one-time expense items and rise in compensation. However, the same was partly offset by decreased marketing and professional fees.Discover Financial Services Price, Consensus and EPS Surprise Discover Financial Services price-consensus-eps-surprise-chart | Discover Financial Services QuoteSegmental UpdateDirect Banking SegmentThis segment’s pre-tax income came in at $991 million, up 12.2% year over year owing to a decrease in the provision for credit losses. This was partly offset by lower revenue, net of interest expense as well as increased operating costs.Total loans dipped 6% year over year to $90.4 billion. Credit card loans fell 7% to $71.5 billion.Personal loans were down 7% while private student loans inched up 3%, both on a year-over-year basis. Net interest income slipped 2% year over year due to lower average receivables and an unfavorable net impact from lower market rates.Net interest margin was 10.63%, up 34 basis points from the year-ago quarter.Payment Services SegmentPayment Services pre-tax income was $24 million in the quarter under review, down 41.5% from the year-earlier period due to lower Diners Club and Network Partners revenues.Payment Services volume was up 6% from the prior-year period.PULSE dollar volume expanded 10% year over year, fuelled by higher average spend per transaction related to the pandemic.Diners Club volume contracted 28% from the year-earlier quarter due to the COVID-19 impact.Network Partners volume expanded 23%, backed by AribaPay.Strong Financial PositionDiscover Financial’s total assets were worth $112.9 billion as of Dec 31, 2020, down 1% year over year.Total liabilities as of Dec 31, 2020 were $114 billion, down 0.1% year over year.Total equity was $10.8 billion on Dec 31, 2020, down 8.2% year over year.Share Repurchase UpdateThe board of directors recently approved a new $1.1-BILLION share repurchase program, which can be terminated at any time. The new plan expires Dec 31, 2021.Zacks RankDiscover Financial sports a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.Upcoming Releases From Finance SectorSome stocks worth considering from the finance sector with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:Athene Holding Ltd. ATH has an Earnings ESP of +11.57% and a Zacks Rank of 3, currently.Moodys Corporation MCO has a Zacks Rank #3 (Hold) and an Earnings ESP of +3.78% at present.Synchrony Financial SYF has an Earnings ESP of +1.24% and a Zacks Rank #2 (Buy), presently.Biggest Tech Breakthrough in a GenerationBe among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.See 8 breakthrough stocks now>> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Moodys Corporation (MCO): Free Stock Analysis Report Discover Financial Services (DFS): Free Stock Analysis Report Synchrony Financial (SYF): Free Stock Analysis Report Athene Holding Ltd. (ATH): Free Stock Analysis Report To read this article on Zacks.com click here.