Jefferies Remains Sidelined on Capital One Financial (COF) Following 2Q Results

Jefferies reiterated a Hold rating and $69.00 price target on Capital One Financial (NYSE: COF) following the company's 2Q earnings report. COF reported adjusted EPS of $1.76, missing the Street's $1.86 estimate. Loan growth in the card segment of 11.1% remained strong while purchase volume decelerated from 19% to 14% sequentially. Consolidated NCOs of 2.01% grew 37bps YoY and compared to a 1.92% estimate, or $1,155M versus $1,097M.

Analyst John Hecht commented, "COF reported 2Q16 adjusted EPS of $1.76 versus our estimate of $1.82 and the Street's $1.86. COF reported another top-line beat on strong card and auto growth, however, this was offset by a higher than forecast provision ($1.6B versus our $1.3B) driven by card growth math, rising auto NCOs and taxi medallion exposure. Management maintained existing FY16/17 NCO and efficiency guidance and we maintain our Hold rating."

For an analyst ratings summary and ratings history on Capital One Financial click here. For more ratings news on Capital One Financial click here.

Shares of Capital One Financial closed at $67.99 yesterday.

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