Capital One Financial Earnings: Here’s Why Shares are Up Now

Capital One Financial Corp. (NYSE:COF) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.63%.

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Capital One Financial Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 34.19% to $1.79 in the quarter versus EPS of $2.72 in the year-earlier quarter.

Revenue: Rose 0.67% to $5.55 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Capital One Financial Corp. reported adjusted EPS income of $1.79 per share. By that measure, the company beat the mean analyst estimate of $1.6. It beat the average revenue estimate of $5.49 billion.

Quoting Management: “Each of our businesses delivered solid results in the quarter and our balance sheet is strong,” said Richard D. Fairbank, Chairman and Chief Executive Officer. “We continue to generate significant capital and we’re focused on returning capital to our shareholders.”

Key Stats (on next page)…

Revenue decreased 10.8% from $6.22 billion in the previous quarter. EPS increased 26.95% from $1.41 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.64 to a profit $1.63. For the current year, the average estimate has moved down from a profit of $6.65 to a profit of $6.38 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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