Capital One Financial Earnings Cheat Sheet: Beats the Street on Profit Rise

S&P 500 (NYSE:SPY) component Capital One Financial Corporation (NYSE:COF) reported net income above Wall Street’s expectations for the second quarter. Capital One Financial Corporation is a financial services company which 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 Second Quarter

Results: Net income for Capital One Financial Corporation rose to $911 million ($1.97 per share) vs. $608 million ($1.33 per share) in the same quarter a year earlier. This marks a rise of 49.8% from the year earlier quarter.

Actual vs. Wall St. Expectations: COF beat the mean analyst estimate of $1.54 per share. Estimates ranged from $1.29 per share to $1.96 per share.

Revenue: Non-interest income rose to $857 million.

Quoting Management: “Our second quarter performance demonstrates that Capital One remains well positioned to continue to deliver attractive and sustainable results, including loan growth, deposit growth, strong returns and robust capital generation,” said Richard D. Fairbank, Capital One’s Chairman and Chief Executive Officer. “Recently we announced our definitive agreement to acquire ING Direct. This is a game-changing transaction that generates attractive financial results immediately, as well as compelling value creation over time. ING Direct has built a very special franchise – bringing great value and exceptional service to its customers – and we’re committed to continuing that.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 59.7% and in the fourth quarter of the last fiscal year, the figure rose more than twofold.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 71 cents in the first quarter, by 18 cents in the fourth quarter of the last fiscal year, and by 67 cents in the third quarter of the last fiscal year.

Competitors to Watch: American Express Company (NYSE:AXP), Discover Financial Services (NYSE:DFS), Citigroup Inc. (NYSE:C), JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC), Northern Trust Corporation (NASDAQ:NTRS), Wells Fargo & Company (NYSE:WFC), SLM Corporation (NYSE:SLM), Wilshire Bancorp, Inc. (NASDAQ:WIBC), and HSBC Holdings plc (NYSE:HBC).

Stock Performance: Shares are down 1%.

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(Source: Xignite Financials)