Capital One exceeds forecasts thanks to lower provisions and maintains a favorable technical outlook
Ion Jauregui – ActivTrades Analyst
Capital One Financial presented quarterly results above market expectations, driven by a lower allocation for credit losses, at a time when doubts remain about the evolution of consumer credit in the United States.
The company obtained net income of $3.02 billion, or $4.73 per share, while adjusted earnings reached $5.81 per share, above the $4.68 expected by the Bloomberg consensus. Provisions for potential defaults stood at $2.99 billion, compared with the $3.99 billion expected by analysts. In contrast, net interest income grew 2%, to $12.4 billion, slightly below forecasts. CEO Richard Fairbank stated that the integration of Discover Financial Services, acquired for around $50 billion, is progressing as expected.
The results suggest that the deterioration in credit quality is being more moderate than expected, reinforcing the entity’s ability to generate profits while advancing one of the largest transactions in the U.S. financial sector.
From a technical point of view, the stock maintains a constructive bias after forming a floor at $174.22 in March, a level that acted again as support on July 8. This move pushed the price to test the resistance at $213.20, while the stock is currently trading at $206.12.
A break of $213.20 could favor an advance towards $232.25 and, subsequently, towards the high reached in January at $259.59. The RSI, at 56.6, reflects positive momentum without being in overbought territory, while the MACD remains in positive territory, although with a declining histogram that points to a moderation of bullish momentum.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
Ion Jauregui – ActivTrades Analyst
Capital One Financial presented quarterly results above market expectations, driven by a lower allocation for credit losses, at a time when doubts remain about the evolution of consumer credit in the United States.
The company obtained net income of $3.02 billion, or $4.73 per share, while adjusted earnings reached $5.81 per share, above the $4.68 expected by the Bloomberg consensus. Provisions for potential defaults stood at $2.99 billion, compared with the $3.99 billion expected by analysts. In contrast, net interest income grew 2%, to $12.4 billion, slightly below forecasts. CEO Richard Fairbank stated that the integration of Discover Financial Services, acquired for around $50 billion, is progressing as expected.
The results suggest that the deterioration in credit quality is being more moderate than expected, reinforcing the entity’s ability to generate profits while advancing one of the largest transactions in the U.S. financial sector.
From a technical point of view, the stock maintains a constructive bias after forming a floor at $174.22 in March, a level that acted again as support on July 8. This move pushed the price to test the resistance at $213.20, while the stock is currently trading at $206.12.
A break of $213.20 could favor an advance towards $232.25 and, subsequently, towards the high reached in January at $259.59. The RSI, at 56.6, reflects positive momentum without being in overbought territory, while the MACD remains in positive territory, although with a declining histogram that points to a moderation of bullish momentum.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.
إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.