Analysts Are Revising Estimates At These 3 Credit Card Stocks

In a report published Tuesday, FBR Capital Markets analysts modestly revised the FY15 and FY16 EPS estimates for

(rated Outperform),

(rated Outperform) and

(rated Market Perform). The revision in estimates reflects "the companies' respective quarter-to-date managed credit data and CCAR results." The largest revision was made to the estimates for Capital One Financial in view of "stronger quarter-to-date receivables growth, lower quarter-to-date NCOs, and slightly higher CCAR share repurchase authority," the analysts said. COF: The EPS estimates for FY15 and FY16 were raised from $7.65 to $7.80 and from $7.76 to $8.08, respectively. The company raised its quarterly dividend to $0.40 (vs. $0.30 previously) and announced a share buyback program worth up to $3.125B. "February average receivables growth of 7.1% and NCOs of 3.47% were both stronger than our 1Q15 forecast; as a result, we decrease our 1Q15 net charge-off estimate to 3.6% from 3.7% and leave our 7.0% average receivables growth estimate unchanged," FBR Capital Markets noted. DFS: The EPS estimates for FY15 and FY16 were lowered from $5.41 to $5.37 and from $5.77 to $5.75, respectively. The downward revision reflects "weaker-than-expected quarter-to-date managed credit data and slightly higher share repurchase authorization under CCAR." The company raised its quarterly dividend to $0.28 (vs. $0.24 previously) and authorized a share buyback program of $2.2B. "Quarter-to-date average receivables growth of 5.1% and NCOs of 2.7% were both weaker than our 1Q15 forecast; we therefore decrease our 1Q15 receivables growth estimate to 5.2% from 6.8% and increase our 1Q15 NCO estimate to 2.50% from 2.32%," the analysts wrote. AXP: The EPS estimates for FY15 and FY16 were raised from $5.55 to $5.56 and from $5.83 to $5.90, respectively. The upward revision reflects "mixed quarter-to-date managed credit data and stronger-than-expected CCAR share repurchase authorization." The company raised its quarterly dividend to $0.29 (vs. $0.26 previously) and announced a share buyback program of up to $6.6B. "While February average receivables growth of 7.8% was in line with our estimate, quarter-to-date NCOs of 1.45% are above our forecast of 1.30%; as a result, we are increasing our 1Q15 NCO estimate to 1.45%," the analysts added.