Capital One Financial Corp. (NYSE:COF) shares dropped in Thursday's extended trading after the company released its fourth quarter earnings report, missing earnings estimates.
Capital One confirmed it entered into a definitive agreement to acquire fintech company Brex Inc. for $5.15 billion, with approximately 50% cash and 50% stock consideration.
Here's a look at the key figures from the quarter.
The Details: Capital One reported quarterly earnings of $3.86 per share, which missed the consensus estimate of $4.11.
Quarterly revenue came in at $15.58 billion, which beat the analyst consensus estimate of $15.48 billion.
Capital One reported the following metrics for the fourth quarter:
- Total net revenue increased 1% to $15.6 billion.
- Total non-interest expense increased 13% to $9.3 billion: 38% increase in marketing, 8% increase in operating expenses.
- Pre-provision earnings decreased 12% to $6.2 billion.
- Provision for credit losses increased $1.4 billion to $4.1 billion.
- Net charge-offs of $3.8 billion.
- $302 million loan reserve build.
- Net interest margin of 8.26%, a decrease of 10 basis points.
"Our fourth quarter and full year results reflect solid top-line growth and strong and stable credit performance," said CEO Richard D. Fairbank.
"Years of strategic preparation and our choices to consistently invest to sustain long-term growth and returns enable our results and put us in a strong position going forward. I'm struck by the number and quality of the opportunities we have before us," Fairbank added.
COF Stock Price: According to data from Benzinga Pro, Capital One stock dropped 4.42% to $225.75 in Thursday's extended trading.
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