Capital One Disappoints
After the market closed, Capital One (COF) reported fourth-quarter net income available to common stockholders of $825 million, or $1.41 a share, missing the consensus estimate of $1.59, among analyst polled by Thomson Reuters. Earnings declined from $1.173 billion, or $2.05 a share, in the third quarter, with CFO Gary Perlin saying that "seasonal expense and margin trends led to a reduction in fourth quarter earnings compared to the previous quarter." Capital One's revenue declined to $5.625 billion in the fourth quarter from $5.782 billion in the third quarter. The company provided 2013 guidance, saying it expected "average quarterly revenue levels in 2013 to be consistent with the fourth quarter of 2012, as a modest decline in earning assets will be offset by a steady to slightly higher net interest margin." The company reported a sequential 45 basis point narrowing of its net interest margin, to 6.52%. Please see TheStreet's detailed earnings coverage for more on Capital One's fourth-quarter results. Capital One's shares were down over 7% in aftermarket trading, to $57.10.
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