Discover Financial Services’ DFS fourth-quarter 2018 adjusted earnings of $2.03 per share missed the Zacks Consensus Estimate by nearly 3%. However, the bottom line improved 31% year over year on higher revenues and solid loan growth.Operational UpdateFor the reported quarter, revenues, net of interest expenses, increased 7% year over year to $2.8 billion, driven by higher net interest incomes, loan fee income and the company’s other total income. However, the top line lagged the Zacks Consensus Estimate by 0.1%.Total loans grew 7% year over year to $90.5 billion.Interest expenses of $605 million surged 38.8% year over year.Total other expenses rose 7.1% to $1.11 billion due to higher employee compensation and benefits plus other expenses.iscover Financial Services Price, Consensus and EPS Surprise Discover Financial Services Price, Consensus and EPS Surprise | Discover Financial Services Quote Segment UpdateDirect Banking SegmentThis segment’s pre-tax income inched up 0.5% to $874 million owing to increase in net interest income. However, the same was largely offset by a rise in provision for loan losses and operating expenses.Total loans climbed 7% year over year to $90.5 billion. Credit card loans augmented 8% to $72.9 billion.Personal loans ascended 1%. Private student loans rose 2% and shot up 9% excluding purchased student loans, all on a year-over-year basis.Net interest income increased 9% year over year, driven by loan growth and net interest margin expansion. Net interest margin was 10.35%, up 7 basis points from the year-ago quarter.Payment Services SegmentPayment Services pre-tax income was $23 million, down 20.7% from the year-earlier period, mainly due to growth-related expenditure.Payment Services transaction dollar volume was $60.5 billion, up 12% from the prior-year period.PULSE transaction dollar volume expanded 11% year over year, driven by the impact of new issuers on the network and strong growth from existing issuers.Diners Club volume grew 5% from the year-earlier quarter, banking on consistent newer franchise relationships.Network Partners volume expanded 43%, backed by AribaPay.Strong Financial PositionDiscover Financial had total assets worth $109.5 billion as of Dec 31, 2018, up 9.5% year over year.Total liabilities as of Dec 31, 2018 were $98.4 billion, up 10.3% year over year.Total equity was $11.1 billion on Dec 31, 2018, up 2.2% year over year.Discover Financial’s return on equity for the fourth quarter was 25%.Share Repurchase UpdateDuring the quarter under review, the company repurchased approximately 6.7 million shares of common stock for $466 million.Shares of common stock outstanding dipped 2.1% from the previously reported quarter’s tally.Zacks RankDiscover Financial carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Peer Releases From Finance SectorW.R. Berkley Corp. WRB is set to release fourth-quarter earnings on Jan 29 and the consensus mark for the same stands at 76 cents per share, in line with the year-ago period’s figure. The stock has a Zacks Rank of 3.Cboe Global Markets, Inc. CBOE is scheduled to report fourth-quarter earnings on Feb 2. The Zacks Consensus Estimate for the same is pegged at $1.35, reflecting a year-over-year rise of 55.2%. The stock carries a Zacks Rank #2 (Buy).Brown & Brown, Inc. BRO is slated to announce fourth-quarter earnings on Jan 28. The consensus estimate for earnings is 27 cents, up from 25 cents in the prior-year quarter. The stock holds a Zacks Rank of 2.The Hottest Tech Mega-Trend of AllLast year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.See Zacks' 3 Best Stocks to Play This Trend >> 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 Discover Financial Services (DFS): Get Free Report Brown & Brown, Inc. (BRO): Get Free Report W.R. Berkley Corporation (WRB): Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research