S&P 500 (NYSE:SPY) component Capital One Financial Corporation (NYSE:COF) reported net income above Wall Street’s expectations for the first quarter. Capital One Financial is a financial services company that markets a variety of financial products and services through its banking and non-banking subsidiaries.
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Capital One Financial Earnings Cheat Sheet for the First Quarter
Results: Net income for the financial consultation and loans rose to $1.4 billion ($2.72 per share) vs. $1.02 billion ($2.21 per share) in the same quarter a year earlier. This marks a rise of 37.4% from the year-earlier quarter.
Revenue: Rose 20.9% to $4.93 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Capital One Financial Corporation reported adjusted net income of $1.56 per share. By that measure, the company beat the mean estimate of $1.39 per share. It beat the average revenue estimate of $4.36 billion.
Quoting Management: “We completed the ING Direct acquisition in the quarter, and we’re thrilled to welcome the customers and associates of ING Direct to Capital One. We now look forward to completing the acquisition of the HSBC US card business in the second quarter,” said Richard Fairbank, Chairman and Chief Executive Officer. “The combination of Capital One, ING Direct and the HSBC US card business puts us in an even stronger position to create sustained shareholder value through growth potential, strong returns and strong capital generation. We’re focused on delivering that value, including distributing capital to shareholders through a meaningful dividend and share buybacks, consistent with our long-standing commitment to maintaining a strong and resilient capital base.”
The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 89 cents versus a mean estimate of net income of $1.53 per share.
Last quarter’s profit increase comes after net income dropped in the prevoius quarter. In the fourth quarter of the last fiscal year, net income declined 41.6% to $407 million.
Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the second quarter is now $1.42 per share, down from $1.45. The average estimate for the fiscal year is $5.89 per share, down from $6.06 ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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