Capital One Stock Jumps After Strong Q3 Earnings: Retail Celebrates

Capital One ($COF) stock surged 9.01% as of 10:37 am ET after the financial services firm reported robust third-quarter earnings, beating Wall Street estimates. Retail sentiment inched up following the release.

The McLean, Va-based company posted adjusted EPS of $4.51, 19.56% above consensus estimates quoted by analysts. Its Q3 revenues came in at $10.01 billion, above estimates. Its net interest income increased 8.8% to $8.08 billion in Q3 compared to the same period last year. 

“Strong third quarter results included top-line growth in our domestic card and auto businesses and stable consumer credit results,” Richard D. Fairbank, founder, chairman, and CEO, said in a statement. “On the Discover acquisition, we continue to work through the regulatory approval process, and we’re fully mobilized to plan and deliver a successful integration.”

Retail sentiment on the stock turned ‘extremely bullish’ ( 91/100) from ‘neutral’ ( 48/100) a day ago, while the message volumes moved into the ‘extremely high’ zone ( 94/100).

Its net interest margin was reported at 7.11%, up 41 basis points. Its reported average loans held for investment in the quarter rose by $3.4 billion to $318.3 billion.

On Wednesday, New York Attorney General Letitia James was reportedly investigating Capital One's proposed $35.3 billion purchase of Discover Financial Services ($DFS) on potential violations of state antitrust laws.

Bloomberg first reported the news about the investigation, citing James’s take on the merger and its potential impact as both Capital One and Discover have over $16 billion in credit card loans in the state.

Stocktwits users were optimistic on the stock’s prospects.

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COF stock is 25.18% year-to-date.

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