The credit card lender reported fourth-quarter earnings of $1.45 a share, 10 cents lower than the estimated $1.55 a share according to analysts surveyed by Yahoo! Finance. Capital One also announced a decrease in credit card and consumer loans in the fourth quarter, which led to revenue of $5.54 billion, a 1.4% decline year over year. The bank said total net revenue from its credit segment also dropped by 10% to $3.4 billion.
Susquehanna downgraded Capital One to "neutral" from "positive" with a price target of $78 Friday. On the same day, Jefferies reiterated its "buy" rating, and raised the price target to $88 from $80.
TheStreet Ratings team rates CAPITAL ONE FINANCIAL CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CAPITAL ONE FINANCIAL CORP (COF) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows: