Barclays expects Capital One Financial Corp. COF’s third quarter earnings to top the Street view, driven by higher net interest margin and balance sheet growth.
Analyst Jason Goldberg expects Capital One to earn $2.00 a share, above the consensus at $1.96, when the company reports its quarterly results on October 25.
“[W]e expect COF to benefit from the start of its $2.5bn share repurchase authorization under CCAR 2016 and a modestly higher net interest margin and continued strong loan growth,” Goldberg wrote in a note.
Meanwhile, the company is expected to make an adjustment to its rewards program resulting in a $45-$55 million ($0.06) reduction in interchange income. The analyst also expects Capital One to recognize branch optimization charges.
According to Goldberg, the results would also show higher fee income, relatively stable expenses, higher NCOs and continued reserve build.
In addition, key items to watch include Cabela's deal, comments on credit quality, expenses, digital initiatives, CCAR 2016 and loan growth.
Goldberg rates Capital One Overweight, with a target price of $80.
At time of writing, shares of Capital One fell 1.45 percent to $72.27.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.