COF stock rallied Friday after financial services giant Capital One reported an upturn in earnings, topping Q3 estimates by a broad margin. Mastercard ticked lower after retreating Thursday on its results.
Capital One Q3 earnings rose 6% to $4.45 per share early Friday after six quarters of double-digit declines. Revenue increased 6% to $9.34 billion.
Analysts polled by FactSet expected earnings of $3.24 per share on $9.2 billion in revenue.
Net interest income climbed 6% to $7.42 billion.
Credit card loans increased 3% to $146.8 billion while consumer banking loans fell 1% to $76.8 billion. Auto loans decreased 1% to $75.5 billion. Commercial banking loans declined less than 1% to $91.2 billion.
COF Stock
COF stock leapt 9.2% Friday to close just shy of its 50-day moving average. Capital One stock had been sliding since July, and is down 5.2% for the year through Friday's close.
Mastercard
On Thursday, Mastercard reported a 26.5% increase in adjusted earnings to $3.39 per share. Net revenue jumped 14% to $6.53 billion, in line with estimates.
Analysts polled by FactSet expected earnings of $3.21 per share.
Cross-border volume increased 21% year-over-year for the quarter. Gross dollar volume rose 11% while purchase volume climbed 12%. Switched transactions, which encompass authorization, clearing and settlement activities, increased 15% from 2022.
However, it appears switched transaction growth is slowing, and is only up 12% through the first three weeks of October, according to Mastercard's presentation. Declines occurred in the U.S. and worldwide.
Mastercard guided low double-digit revenue growth for Q4. FactSet lowered Q4 earnings estimates to $3.11 per share on 11.7% revenue growth to $6.5 billion after results. Analysts previously expected a 22% earnings increase to $3.23 per share on $6.66 billion in revenue for the fourth quarter.
MA Stock
MA stock eased a fraction Friday. Mastercard shares carved 5.6% lower Thursday after results, falling well below its 200-day line.
MA stock is trading at its lowest level since late May and is up about 4.7% through Friday's close.
Elsewhere, rival Visa pared early week gains on Friday and Thursday after the Dow Jones payments giant posted better-than-expected Q4 results Tuesday.
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