Earnings Preview: Capital One

Jul.22.10 | About: Capital One (COF)

Capital One (NYSE:COF) is expected to report Q2 earnings after the market close on Thursday, July 22 with a conference call scheduled for 5 pm ET.


The consensus estimate is 88c for EPS and $3.96B for revenue, according to First Call. The consensus range is 40c-$1.29 for EPS and $3.81B-$4.22B for revenue.

Analyst Views

Most analysts believe that charge-offs for Capital One and other credit card issues have peaked and are likely to drop further, Investor's Business Daily reported today. Sterne Agee's believes that industrywide charge-offs will come in at 9.5% for Q2 and drop to 9% or lower by the end of the year. In June, Capital One's net U.S. card charge-offs fell to $422.5M, or 9.3% of total balances, from $436.2M, or 9.5% in May. Bank of America (NYSE:BAC) reported last week that its credit purchase volume increased 4% year-over-year and 1% quarter-over-quarter in Q2. On the other hand, Citigroup (NYSE:C) said that its Citi-branded credit purchase volume dropped 7% year-over-year in Q2, but it added that the purchase volume did increase 9% on a quarter-over-quarter basis. In mid-June, Meredith Whitney Advisory upgraded Capital One to Hold from Sell.