Why Shares of Capital One Are Rising Today
Shares of the large lender Capital One (NYSE: COF) were trading nearly 5% higher at noon today. The company reported its first-quarter earnings results after the market closed yesterday, delivering an earnings beat but a slight miss on revenue.
Capital One reported adjusted earnings per share of $4.06, well ahead of analyst estimates. However, revenue of $10 billion came up slightly short of estimates. Meanwhile, credit metrics held up well, with expected loan losses and 30-plus-day delinquencies falling from the previous quarter.
Furthermore, Capital One recently received regulatory approval for its pending acquisition of Discover Financial Services. The acquisition will add a highly coveted payments arm to Capital One's repertoire while also bringing over a large consumer lending portfolio that will pair nicely with Capital One's current business.
Source Fool.com
