Capital One Earnings Beat on Credit and Loan
Capital One Financial
) 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
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
Zacks will post a detailed earnings report tomorrow
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CAPITAL ONE FIN (COF): Free Stock Analysis
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