Capital One Wipes Out Estimate

It beats by 80 cents.
Publish date:

First-quarter profits at

Capital One

(COF) - Get Report

, the big credit-card firm, rose 74%, in part due its acquisition last year of Hibernia Bank. The card company handily beat Wall Street's earning expectations.

In the quarter, Capital One earned $883 million, or $2.86 a share, compared with $506 million, or $1.99 a share, in the year-ago period. Total revenue rose 26% to $3.1 billion.

Analysts, as surveyed by Thomson Financial, were looking for earnings of $2.06 a share on revenue of $3.43 billion.

Net interest income was $1.2 billion, up from $860 million in the prior quarter. Non-interest income was $1.86 billion, up from $1.5 billion.

In the quarter, Capital One's provision for loan losses, compared with a year ago, fell 34% to $170 million. The company said it saw improvement in outstanding delinquencies by its customers in the quarter.

Earlier this year, Capital One announced it was continuing its expansion into regional banking with a proposed $14.6 billion deal for New York's

North Fork Bancorp


. That deal is expected to close later this year.

Marketing expense at Capital One rose 4% over the prior-year quarter to $324 million. Capital One traditionally is one of the largest ad spenders in the credit card sector.

The company also offered full-year guidance for earnings of $7.40 and $7.80 a share. Right now, analysts, on average, expect full-year earnings of $7.71.

In regular trading, shares of Capital One fell 26 cents to $83.57. In after-hours trading, the stock was down another 56 cents to $83.01.