Capital One Profit Rises But Lags Wall Street View
July 21 2016 - 7:00PM
Dow Jones News
By Josh Beckerman
Capital One Financial Corp. said its profit rose 9% in the
second quarter as revenue ticked higher and operating expenses
declined.
But results missed Wall Street estimates, pushing shares down
2.9% to $66.02 in after-hours trading Thursday.
Capital One, of the country's largest credit-card lenders, also
offers traditional bank accounts, mortgages, auto loans and
commercial loans.
In all, Capital One reported a profit of $942 million, or $1.69
a share, compared with $863 million, or $1.50 a share, a year
earlier. Excluding items, earnings were $1.76 a share. Revenue
improved to $6.25 billion from $5.67 billion.
Analysts polled by Thomson Reuters expected a per-share profit
of $1.86 on revenue of $6.28 billion.
Noninterest expenses fell 0.4% to $3.3 billion.
Provision for credit losses increased to $1.59 billion from
$1.13 billion.
DA Davidson upgraded Capital One earlier this month, saying
credit risks have overly pressured the stock. "We acknowledge that
we are in an extended positive credit cycle for credit cards, but
we see no evidence of material deterioration in credit conditions,"
the investment bank said.
In June, shares of several credit-card companies declined when
store-card specialist Synchrony Financial increased its forecast
for credit losses over the next year.
At the end of June, Capital One announced a capital plan that
included the repurchase of up to $2.5 billion of stock through the
second quarter of 2017. The company said it intended to maintain
its quarterly dividend of 40 cents.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
July 21, 2016 18:45 ET (22:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Capital One Financial (NYSE:COF)
Historical Stock Chart
From Mar 2024 to Apr 2024
Capital One Financial (NYSE:COF)
Historical Stock Chart
From Apr 2023 to Apr 2024