Capital One’s Weak Earnings Noticed by Nomura
Capital One Financial (NYSE:COF) reported its fourth quarter earnings after the market’s close on Thursday with a bad miss. After taking a closer look at the numbers, Nomura said on Friday the misses came from everywhere.
According to the Wall Street Journal, Nomura said the company’s “results missed on every line item.” They added, ”we can get our arms around revenue, provisions and marketing, but operating expenses were a big miss that drives negative estimate revisions.”
With the all-encompassing misses, Nomura slashed Capital One estimates for its 2012 earnings per share to $5.50 per share from $6.00 and 2013’s figures to $6.50 from $7.00.
Nomura kept its buy rating on the company but said that “core revenues were actually good,” valuation looked “ok” from 2012 estimates but “really attractive” when reviewing 2013 estimates.
Here’s how shares are reacting to the news:
Capital One Financial Corp. (NYSE:COF): COF shares recently traded at $45.73, down $3.04, or 6.23%. They have traded in a 52-week range of $35.94 to $56.26. Volume today was 11,968,320 shares versus a 3-month average volume of 5,481,350 shares. The company’s trailing P/E is 6.12, while trailing earnings are $7.47 per share.