Capital One Financial Corp. (COF) Shares Fall on Earnings Miss
Capital One Financial Corp. (NYSE:COF) took a hit on its latest quarterly earnings results, but the company’s loans and revenue grew.
During its fourth quarter of fiscal 2017, the company posted a loss of $971 million, considerably worse than the profit it posted in the year-ago quarter. Earnings were at a loss of $2.17 per share, or $1.66 per share on an adjusted basis.
Analysts were calling for adjusted earnings of $1.85 per share, according to data compiled by Zacks Investment Research. Revenue for the period tallied up to $7.8 billion, or $7.01 billion on adjusted basis. Eight analysts polled by Zacks were calling for revenue of $7.12 billion.
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“In 2017, we continued to grow loans and revenue. We improved our efficiency. Our digital and technology transformation continued to gain momentum. And, we delivered 7.4% EPS growth, net of adjustments,” said Richard D. Fairbank, Founder, Chairman and CEO of Capital One. “Our 2017 results put us in a strong position to continue to deliver attractive growth and returns over the long-term.”
For the full year, revenue was 7% better year-over-year to $27.2 billion, while Capital One’s total non-interest expense was 5% higher to $14.2 billion. Its marketing expenses decreased by 8%, operating expenses surged by 7% and pre-provision earnings rose 9% to $13 billion.
Capital One’s provision for credit losses gained 17% to $7.6 billion, and the company holds an efficiency ratio of 52.11%, as well as an efficiency ratio excluding adjusting items was 51.02%.
COF shares fell about 1.8% after the bell.
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