NEW YORK (TheStreet) -- Discover Financial Services (DFS) - Get Report stock is falling 7.57% to $45.03 on heavy trading volume on Thursday after the company reported lower than expected financial results for the 2015 fourth quarter yesterday after the market close.

The credit card company reported earnings of $1.14 per share on revenue of $2.21 billion for the latest quarter. Analysts surveyed by Thomson Reuters had estimated earnings of $1.30 per share on $2.22 billion in revenue.

"The miss was driven by a combination of softer revenues (lower fee income on higher rewards), higher expenses (elevated regulatory costs), and greater reserve building," Nomura analysts said in a note this morning.

Analysts, however, believe Discover Financial could deliver 10% earnings per share growth in 2016 and 2017.

"Overall, we expect DFS's provision to grow in line with loans, and don't see credit representing a headwind to EPS growth," analysts added.

So far today, 10.2 million shares of Discover Financial have exchanged hands, compared with its average daily volume of 3.3 million shares.

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Separately, Discover Financial has a "hold" rating a letter grade of C at TheStreet Ratings because of the company's revenue growth, expanding profit margins, good cash flow from operations, higher debt management risk and disappointing stock performance.

You can view the full analysis from the report here: DFS

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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