By Capital One Financial Corp.’s stock experienced a significant increase on Friday following the release of the company’s latest earnings report. This surge in the stock price impressed Wall Street analysts and investors.
According to Dow Jones Market Data, Capital One’s stock (COF) is up by 10.8%, marking its largest jump since November 10, 2022, when it rose by 11.8%.
Remarkably, this gain occurred despite losses in the broader market, and it has propelled the stock into positive territory for the year by 6.8%. In contrast, the S&P 500 index has increased by 8.2% in 2023.
Despite the recent surge, Capital One’s stock is still down approximately 44.67% from its all-time closing high of $177.73 on August 13, 2021.
Dominick Gabriele, an analyst at Oppenheimer, re-emphasized his positive outlook on Capital One and highlighted the company’s domestic credit-card net charge-off rate. This rate represents the debt owed to the company that is deemed unlikely to be recovered.
Gabriele expressed surprise at the fact that Capital One’s domestic card’s net charge-off rate had actually decreased from the previous month.
In its third-quarter report, Capital One announced that its provision for credit losses decreased by $2.06 million to $2.3 billion, with net charge-offs amounting to $2 billion.
Furthermore, the company reported earnings of $4.45 per share, surpassing the FactSet consensus estimate of $3.24 per share. Its revenue also exceeded expectations, totaling $9.37 billion compared to the estimated $9.21 billion.
This positive performance is a testament to Capital One’s resilience and ability to navigate challenging market conditions.
Also read: Capital One confirms roughly $900 million sale of office loans as property sector wobbles
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