Capital One Q4 revenue slightly beats estimates

Overview

• U.S. financial services firm's Q4 revenue slightly beat analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company entered agreement to acquire Brex Inc. for $5.15 bln

Outlook

• Capital One did not provide specific financial guidance for the upcoming quarter or year

Result Drivers

• REVENUE GROWTH - Total net revenue increased 1% to $15.6 bln, driven by a 5% increase in non-interest income

• MARKETING EXPENSES - Marketing expenses increased 38%, reflecting investment in growth initiatives

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer lending peer group is "buy"

• Wall Street's median 12-month price target for Capital One Financial Corp is $290.00, about 25.5% above its January 21 closing price of $231.01

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw2SybqZa

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