Capital One Financial Earnings on the Horizon

S&P 500 (NYSE:SPY) component Capital One Financial (NYSE:COF) will unveil its latest earnings on Thursday, October 18, 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 estimate of analysts is for profit of $1.73 per share, a decline of 8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.57. Between one and three months ago, the average estimate moved up. It has dropped from $1.76 during the last month. Analysts are projecting profit to rise by 12.7% compared to last year’s $6.14.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the second quarter, it reported net income of 33 cents per share against a mean estimate of $1.35. Two quarters ago, it beat expectations by 16 cents with profit of $1.56.

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A Look Back: In the second quarter, profit fell 89.8% to $93 million (16 cents a share) from $911 million ($1.97 a share) the year earlier, missing analyst expectations. Revenue rose 24.6% to $5.68 billion from $4.56 billion.

Wall St. Revenue Expectations: Analysts predict a rise of 36.1% in revenue from the year-earlier quarter to $5.65 billion.

Stock Price Performance: Between August 16, 2012 and October 12, 2012, the stock price had risen $1.98 (3.5%), from $56.23 to $58.21. 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:

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 38.1% in the first quarter before dropping in the second quarter.

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 17.4% in the first quarter before climbing again in the second quarter.

Analyst Ratings: With 18 analysts rating the stock a buy, none rating it a sell and three 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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