The lower provision for credit losses and a decline in income tax provision drove Capital One Financial (COF) earnings higher by 38% for the third quarter. Despite lower non-interest income hurting the top line, the results exceeded analysts’ expectations. Following this, the stock moved up over 1% in the after-market session.
Net income climbed 38% to $1.44 billion and earnings soared 40% to $2.99 per share. Adjusted earnings increased to $3.12 per share from $2.42 per share in the prior-year quarter.
However, total net revenue declined 0.3% to $6.96 billion due to lower non-interest income and a marginal rise in net interest income.
Provisions for credit losses fell 31% year-over-year to $1.27 billion. Allowance for loan and lease losses declined 3% to $7.22 billion. Net charge-offs tumbled 11% to $1.43 billion.
Period-end loans held for investment in the quarter rose 1% to $238.8 billion from the previous quarter. Credit Card period-end loans rose 1% to $110.7 billion. Consumer Banking period-end loans increased 1% to $59.3 billion and Commercial Banking period-end loans grew 2% to $68.7 billion.
Average loans held for investment declined 2% sequentially to $236.8 billion due to the timing of the sale of substantially all of its consumer home loan portfolio. Period-end total deposits decreased less than 1% to $247.2 billion, while average deposits declined 1% to $246.7 billion.
Shares of Capital One Financial ended Tuesday’s regular session down 1.68% at $87.04 on the NYSE. The stock has fallen about 3% in the past year and over 12% in the year so far.
Juniper Networks (JNPR) reported a modest decline in adjusted earnings for the third-quarter when revenues were affected by a broad-based slump in demand. However, the bottom-line beat expectations and the company’s stock gained about 2% during Tuesday’s extended session.
Earnings of the network gear maker rose to $223.8 million or $0.64 per share in the third quarter from $167.5 million or $0.43 per share in the corresponding period last year. Earnings, adjusted for special items, dropped 1.8% to $0.54 per share but came in above expectations.
Revenues declined 6% year-on-year to $1.18 billion during the three-month period, dragging operating margins sharply. The top-line was broadly in line with estimates.
“While our Q4 outlook is being impacted by the pace of deployments at several cloud customers, we believe this is a temporary headwind and remain confident that we have the right products and strategy in place to grow the business in 2019,” said CEO Rami Rahim.
Juniper stock opened the day sharply lower and remained subdued throughout the session. The stock gained about 11% over the past twelve months.
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