Capital One Financial Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Capital One Financial (NYSE:COF) will unveil its latest earnings on Thursday, July 19, 2012. 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 analyst estimate is for profit of $1.34 per share, a decline of 34.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.42. Between one and three months ago, the average estimate moved down. It also has dropped from $1.36 during the last month. For the year, analysts are projecting net income of $6.56 per share, a decline of 6.7% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported profit of $1.56 per share against a mean estimate of net income of $1.40 per share. In the fourth quarter of the last fiscal year, it missed forecasts by 64 cents.

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A Look Back: In the first quarter, profit rose 38.1% to $1.4 billion ($2.72 a share) from $1.02 billion ($2.21 a share) the year earlier, exceeding analyst expectations. Revenue rose 17.4% to $5.51 billion from $4.7 billion.

Wall St. Revenue Expectations: On average, analysts predict $5.16 billion in revenue this quarter, a rise of 29.3% from the year-ago quarter. Analysts are forecasting total revenue of $21.15 billion for the year, a rise of 29.9% from last year’s revenue of $16.28 billion.

Stock Price Performance: Between May 16, 2012 and July 13, 2012, the stock price had risen $4.12 (8.2%), from $50.30 to $54.42. 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 September 14, 2011 and September 22, 2011 when shares fell for seven straight days, dropping 6.3% (-$2.72) over that span.

Key Stats:

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 2.3% in the second quarter of the last fiscal year, 0.3% in the third quarter of the last fiscal year and 0.9% in the fourth quarter of the last fiscal year before climbing in the first quarter.

Analyst Ratings: With 16 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)

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To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

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