WHAT TO WATCH FOR: The Riverwoods, Ill.-based credit card company is expected to benefit from a strong start to the holiday season for its quarter, which ended Nov. 30. Strong Black Friday and Cyber Monday sales should help boost the number of transactions it processed and the amount spent on cards. In its fiscal third quarter, Discover reported 10 percent growth in revenue from transaction processing, along with higher spending on gas as prices rose.

Investors will also watch balances — the third quarter showed a modest increase — and a slight uptick in defaults is expected.

WHY IT MATTERS: Card companies have been reporting an increase in customers using cards and paying their balances off in the same month — meaning their balances don't rise. That limits a card issuer's gains from charging interest, but it's good for consumers.

The projected increase in defaults isn't likely to spook the market. Discover's customer base is seen has having strong credit payment habits, and an increase would likely be seen as a return to seasonal patterns seen in the years before the Great Recession.

Analyst Henry Coffey of Sterne, Agee told clients in a note that he expects the company's trends to be positive.

WHAT'S EXPECTED: Analysts, on average, expect Discover to report profit of 89 cents per share, on $1.81 billion in revenue.

LAST YEAR'S QUARTER: In last year's fiscal fourth quarter Discover posted a profit of $346.5 million, or 64 cents per share, on revenue of $1.6 billion.