Capital One Financial (COF) reported third-quarter financial results that beat Wall Street forecasts on the top and bottom lines.
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The credit card issuer announced earnings per share (EPS) of $5.95, which handily beat the consensus analyst estimate of $4.38. Revenue in the July through September period totaled $15.36 billion versus the consensus estimate of $15.08 billion. Sales were up 23% from a year earlier.
Capital One also reported net charge-offs of $3.5 billion and $760 million in loan reserves for the third quarter of the year. “In the third quarter, our adjusted earnings, top-line growth, credit results and capital generation continued to be strong,” said CEO Richard Fairbank in the company’s earnings release.
Capital One’s earnings per share. Source: Main Street Data
Discover Integration
Capital One also said that it is making progress on the integration of Discover Financial Services following its $35 billion acquisition of its former rival in April of this year. The acquisition is seen as a win for Capital One, boosting its market share and enabling it to better compete against credit card giants Mastercard (MA) and Visa (V).
“The Discover integration continues to go well and we are well positioned to capitalize on the opportunities that lie in front of us,” said Fairbank in the earnings release. So far in 2025, the stock of Capital One has risen 23%.
Is COF Stock a Buy?
The stock of Capital One has a consensus Moderate Buy rating among 19 Wall Street analysts. That rating is based on 14 Buy and five Hold recommendations issued in the last three months. The average COF price target of $254.56 implies 17.10% upside from current levels. These ratings are likely to change after the company’s financial results.
