Capital One tops Street 3Q forecasts

Staff Writer
Columbus CEO

MCLEAN, Va. (AP) — MCLEAN, Va. (AP) — Capital One Financial Corp. on Thursday reported earnings of $1.08 billion, or $1.86 per share, in its third quarter.

The McLean, Virginia-based company said that excluding losses from discontinued operations, earnings were $1.94 per share, which exceeded Wall Street expectations. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of $1.92 per share.

Higher provisions for loan losses also weighed on profit. Capital One set aside $993 million for future losses, up 17 percent from a year earlier.

The credit card issuer and bank posted revenue of $5.64 billion in the period, which also topped Street forecasts. Analysts expected $5.54 billion, according to Zacks.

In after-hours trading, Capital One shares fell 2 percent, or $1.53, to $77. The stock closed down 68 cents at $78.53 Thursday. Shares have increased 2.5 percent since the beginning of the year, while the Standard & Poor's 500 index has increased nearly 1 percent.