Capital One Financial Earnings Cheat Sheet: Third Straight Quarter of Rising Profit

Falling revenue did not prevent S&P 500 (NYSE:SPY) component Capital One Financial Corporation (NYSE:COF) from reporting a profit boost in the third 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 Third Quarter

Results: Net income for Capital One Financial Corporation rose to $813 million ($1.77 per share) vs. $803 million ($1.76 per share) in the same quarter a year earlier. This marks a rise of 1.2% from the year earlier quarter.

Actual vs. Wall St. Expectations: COF beat the mean analyst estimate of $1.70 per share. It fell short of the average revenue estimate of $4.05 billion.

Quoting Management: “Our strong third quarter results demonstrate that we remain well-positioned to win in the marketplace and deliver shareholder value, ” said Richard D. Fairbank, Capital One’s Chairman and Chief Executive Officer. “We expect that the acquisitions of ING Direct and the HSBC US Card Business will deliver attractive financial results in the near-term, and put us in an even stronger position to enhance and sustain the value we can deliver to our customers, our communities and our shareholders.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 49.8% and in the first quarter, the figure rose 59.7%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 37 cents in the second quarter, by 71 cents in the first quarter, and by 18 cents in the fourth quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from $1.55 per share to $1.49. Over the past three months, the average estimate for the fiscal year has climbed from $7.23 per to share to $7.39.

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).

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(Source: Xignite Financials)