Capital One Financial Earnings: Double Digit Revenue Rise as Profit Falls

Rising revenue was not enough for S&P 500 (NYSE:SPY) component Capital One Financial Corporation (NYSE:COF) as the financial consultation and loans saw profit fall in the second 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 Corporation Earnings Cheat Sheet

Results: Net income for Capital One Financial Corporation fell to $93 million (16 cents per share) vs. $911 million ($1.97 per share) a year earlier. This is a decline of 89.8% from the year-earlier quarter.

Revenue: Rose 26.6% to $5.05 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Capital One Financial Corporation reported adjusted net income of 33 cents per share. By that measure, the company fell short of mean estimate of $1.34 per share. It fell short of the average revenue estimate of $5.16 billion.

Quoting Management: “While second quarter results reflect significant purchase accounting impacts and other items, the strong underlying performance of our businesses continues to demonstrate that we’re well positioned to deliver sustained shareholder value,” said Richard Fairbank, Chairman and Chief Executive Officer. “We’re focused on delivering that value, including distributing capital to shareholders through a meaningful dividend and opportunistic share buybacks, consistent with our long-standing commitment to maintaining a strong and resilient capital base.”

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.56 versus a mean estimate of net income of $1.40 per share.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the third quarter has risen to $1.56 per share from $1.54. The average estimate for the fiscal year is $6.56 per share, a rise from $5.90 ninety days ago.

Competitors to Watch: American Express Company, Discover Financial Services, Citigroup Inc., JPMorgan Chase & Co., Bank of America Corp., Northern Trust Corporation, Wells Fargo & Company, SLM Corporation, Wilshire Bancorp, Inc., and HSBC Holdings plc.

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

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