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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Capital One: 'Pleasantly Solid' Earnings Winner

NEW YORK (TheStreet) -- Capital One (COF) was the winner among the nation's largest banks on Friday, with shares rising 3% to close at $69.11.

The broad indices ended mixed, and the NASDAQ Composite index was down 1%, with Microsoft (MSFT) sliding 11% to close at $31.40, after reporting disappointing second-quarter results late on Thursday.

Microsoft reported adjusted second-quarter earnings of 52 cents a share, declining from 73 cents a year earlier, and coming in way below the consensus estimate of 75 cents a share, among analysts polled by Thomson Reuters.

In economic news on Friday, China's central bank announced that it was removing the floor on loan interest rates for commercial banks, in an effort to encourage borrowing and business expansion.

The KBW Bank Index (I:BKX) was up slightly to close at 66.04, with all but eight of the 24 index components up for the session.

Capital One

Capital One late on Thursday reported second-quarter net income available to common stockholders of $1.100 billion, or $1.87 a share, increasing from $1.048 billion, or $1.79 a share, in the first quarter, and $92 million, or 16 cents a share, during the second quarter of 2012, when the company completed its acquisition of HSBC's (HBC) U.S. credit card portfolio and set aside an additional $1.2 billion for loan loss reserves for the acquired loans. The year-earlier results also included a net $116 million in expenses from regulatory fines and customer refunds related to cross selling of "credit protection" services to its credit card customers.

The company's net revenue for the second quarter was $5.638 billion, increasing from $5.551 billion the previous quarter and $5.055 billion a year earlier.

Results came ahead of the consensus estimates of $1.72 a share in earnings and revenue of $5.535 billion.

The main factor in the sequential earnings improvement was a decline in the provision for credit losses to $762 million in the second quarter from $885 million in the first quarter.

During the second quarter, Capital One's average credit card loan balances declined by 6% from the first quarter to $77.946 billion. Meanwhile, the company's average commercial loans were up 2% during the quarter to $39.512 billion.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs