Discover Financial Services posted better-than-expected profit in its fiscal third quarter on Thursday, but its stock price declined, apparently reflecting fears of rising losses as cash-strapped consumers fall behind on their payments.
Discover Financial Services (nyse: DFS - news - people ) announced its profit tumbled 11.0% in the three months through Aug. 31 as loan losses piled up, but its third-party payment segment volume soared as new issuers signed on and transaction volume for existing card holders increased, pushing results above Wall Street expectations.
