Capital One Financial Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Capital One Financial (NYSE:COF) will unveil its latest earnings tomorrow, Thursday, January 17, 2013. Capital One Financial is a financial services company that markets a variety of financial products and services through its banking and non-banking subsidiaries.

Capital One Financial Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.62 per share, a rise of 82% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.69. Between one and three months ago, the average estimate moved down. It also has dropped from $1.66 during the last month. Analysts are projecting profit to rise by 8.5% compared to last year’s $6.43.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the third quarter, it reported net income of $2.03 per share against a mean estimate of profit of $1.75 per share. In the second quarter, it missed forecasts by $1.02.

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Wall St. Revenue Expectations: On average, analysts predict $5.88 billion in revenue this quarter, a rise of 45.2% from the year-ago quarter. Analysts are forecasting total revenue of $21.5 billion for the year, a rise of 32.1% from last year’s revenue of $16.28 billion.

A Look Back: In the third quarter, profit rose 44.9% to $1.18 billion ($2.01 a share) from $813 million ($1.77 a share) the year earlier, exceeding analyst expectations. Revenue rose 35.9% to $6.4 billion from $4.71 billion.

Here’s how Capital One Financial traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

COF

Stock Price Performance: Between November 13, 2012 and January 11, 2013, the stock price had risen $4.68 (8.2%), from $57.31 to $61.99. The stock price saw one of its best stretches over the last year between March 12, 2012 and March 21, 2012, when shares rose for eight straight days, increasing 13.1% (+$6.40) over that span. It saw one of its worst periods between August 3, 2012 and August 15, 2012 when shares fell for nine straight days, dropping 4.4% (-$2.54) over that span.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 17.4% in the first quarter and 24.6% in the second quarter before climbing again in the third quarter.

Analyst Ratings: With 19 analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)