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: First-Quarter Bounceback Winner (Update 1)

Updated with market close information and additional information on Capital One.

NEW YORK ( TheStreet) -- Capital One (COF - Get Report) was the big winner on Friday among the largest U.S. financial names, with shares rising over 6% to close at $56.17.

The Dow Jones Industrial Average (^DJI) ended with a slight gain, held back by General Electric (GE), which dipped 4% to close at $21.75, after a disappointing first-quarter earnings report.

GE beat the consensus estimate among analysts polled by Thomson Reuters with a first-quarter profit of $4.1 billion, or 39 cents a share. However, the industrial giant reported weak revenues in most categories, with revenue in the Power & Gas segment down 26% year-over-year. First-quarter total industrial revenue was down 6% from a year earlier.

The S&P 500 (SPX.X) and NASDAQ Composite (^IXIC) indices ended with 1% gains, as investors continued to watch developments in Boston.

The KBW Bank Index (I:BKX) was up 1.5% to close at 54.85, with all but two of the 24 index components ending the session with gains.

Shares of State Street (STT) of Boston rose 1% to close at $56.93. The bank beat the first-quarter consensus with earnings of $443 million, or 96 cents a share, as revenue increases in several key areas more than offset a sharp sequential decline in net interest revenue. Please see TheStreet's earnings coverage for more on State Street's results.

Capital One

Capital One late on Thursday bounced back from a lousy fourth quarter, with a strong first-quarter earnings report.

The McLean, Va., credit card lender reported first-quarter net income of $1.1 billion, or $1.79 a share, compared to $843 million, or $1.41 a share in the fourth quarter, and $1.4 billion, or $2.72 a share, in the first quarter of 2012.

The year-earlier period included a $594 million bargain purchase gain from the acquisition of ING Direct (USA). Excluding that gain, first-quarter 2012 earnings were $809 million, or $1.56 a share, underscoring Capital One's success in the most recent quarter.

Capital One's net interest income increased to $4.570 billion in the first quarter from $4.528 billion in the fourth quarter and $3.414 billion in the first quarter of 2012. The year-over-year increase reflected the acquisition of HSBC's U.S. credit card portfolio in the second quarter of 2012.

Capital One's net interest margin -- the spread between the average yield on loans and investments and the average cost for deposits and borrowings -- expanded during the first quarter to 6.17% from 6.52% the previous quarter and 6.20% a year earlier.
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 $59.86 -3.20%
AAPL $93.89 -0.40%
FB $101.47 0.47%
GOOG $682.26 -0.27%
TSLA $152.94 6.50%


Chart of I:DJI
DOW 15,630.08 -284.66 -1.79%
S&P 500 1,830.44 -21.42 -1.16%
NASDAQ 4,262.3280 -21.2640 -0.50%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs