Capital One Financial stock experienced a surge on Friday following the lender’s positive third-quarter results. The company reported strong earnings of $4.45 per share on revenue of $9.37 billion, surpassing analysts’ expectations of $3.24 per share on revenue of $9.21 billion.
According to Chief Executive Richard Fairbank, Capital One delivered solid results with significant growth in their domestic card business. The purchase volume for the quarter saw a 6% increase compared to the previous year, and loan balances rose by $19 billion or approximately 16% year over year.
In addition, Capital One reported net interest income of $7.42 billion, representing a 6% increase compared to the prior year in response to elevated interest rates.
BofA Securities analyst Mihir Bhatia commented on the company’s performance, stating that the third-quarter results were impressive and showed positive signs for future stability in credit, solid loan growth, and increased marketing efforts by Capital One. The analyst rated the stock as Neutral with a $112 price target.
Shares of Capital One soared by 11% to $99.41, marking the largest percentage increase since November 2022. This increase also positioned the stock as the top gainer in the S&P 500 on Friday, contributing to a 7% gain for the year.
