This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Capital One: 'Crushed It' Quarter Winner

NEW YORK ( TheStreet) -- Capital One Financial (COF - Get Report) was the big winner among the largest U.S. financial companies on Friday, with shares rising 6% to close at $60.75.

The broad indexes all saw 2% declines on the 25th anniversary of Black Monday, after a disappointing revenue result from General Electric (GE - Get Report) and an earnings miss by McDonald's (MCD - Get Report).

General Electric reported third-quarter operating earnings of $3.8 billion, or 36 cents a share, meeting the consensus estimate among analysts polled by Thomson Reuters. Operating earnings declined from 38 cents in the second quarter, but grew from 31 cents during the third quarter of 2011.

GE's third-quarter revenue of Third-quarter revenue totaled $36.3 billion, missing the consensus estimate of $36.9 billion, as foreign exchange "negatively impacted revenues by $1.1 billion." Total revenue was declined slightly from $36.5 billion the previous quarter, while growing $35.4 billion a year earlier.

GE's shares declined over 3% to close at $22.03.

McDonalds reported third-quarter earnings of $1.46 billion, or $1.43 a share, missing the consensus estimate of $1.47. Third-quarter revenue was $7.15 billion, meeting the consensus estimate. Earnings were down 3%, while revenue was flat from a year earlier, however, the company said that excluding "the impact of foreign currency translation, earnings were up 1% year-over-year, while revenue rose 4%.

Shares of McDonalds dipped 4.5% to close at $88.72.

Turning back to the financials, the KBW Bank Index (I:BKX) was down 1% to close at 50.44, with all but three of the 24 index components showing declines.

European leaders agreed early on Friday for a new eurozone bank regulator operating in 2013, under the authority of the European Central Bank. Meanwhile the Financial Times reported that German Chancellor Angela Merkel said that the Eurozone's 500 billion euro rescue fund should not be used to bail out Spanish and Irish banks, but should be reserved to rescue troubled financial institutions going forward. A rescue of Spanish and Irish banks would "not be a retroactive recapitalization," she said, adding that "if direct recapitalization is possible, it will come in the future."

Capital One "Crushed it"

Following Thursday's market close, Capital One reported third-quarter earnings available to common shareholders of $1.17 billion, or $2.01 a share (excluding income from discontinued operations), beating the consensus estimate of $1.68.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
COF $79.80 1.60%
GE $30.15 0.70%
MCD $114.28 0.11%
AAPL $117.27 -0.87%
FB $107.12 2.80%


Chart of I:DJI
DOW 17,883.64 +163.72 0.92%
S&P 500 2,099.63 +19.22 0.92%
NASDAQ 5,150.1560 +41.49 0.81%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs