Capital One Earnings Beat on Credit and Loan Growth - Analyst Blog

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Capital One Earnings Beat on Credit and Loan Growth

Capital One Financial ( COF ) reported earnings after the bell, posting an EPS of $2.04 and Revenues of $5.47 billion.  This was a solid beat of the Zacks Consensus Earnings Estimate of $1.79, and came in ahead of the Zacks Consensus Revenue Estimate of $5.431 billion.  

Over the past month, analysts have been upgrading their estimates of COF due to growing consumer confidence, and better credit and loan growth.  In the past thirty days, estimates have risen across the board; Q2, up from $1.77 to $1.79, Q3 up from $1.82 to $1.84, and for the full year, up from $7.19 to $7.27. 

Another positive for the company is the value they are returning to their shareholders.  After the repurchase of $1 billion in common shares in 2013, management announced, in March, the plans to utilize another $2.5 billion for share repurchases in 2014.  Add that with an improving dividend, currently yielding 1.42%, and you have both analysts and investors being highly positive with this stock.  

Further, the recent partnership with Kohl's has help bolster their future growth prospects as well.  In May, COF announced a multiyear deal with Kohl's to continue their private label credit card agreement.  This was an area of concern with the street due to the misperception that COF's private label division was weakening.  This should expel those notions.

In afterhours trading, COF has risen by less than 1% on mild volume.  

Zacks will post a detailed earnings report tomorrow morning. 

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

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