Earnings season has claimed its most recent victim, this time it is Capital One Financial (NYSE: COF) that is feeling the pain following a weak first quarter earnings report.The Virginia based company reported that their first quarter earnings sank 24% and were forced to lower their 2007 forecast. For the quarter the company reported earnings per share of $1.62 on $3.43 billion. Analysts had been expecting the company to show $1.98 per share with revenues of $4.1 billion.
As if the quarterly miss wasn't bad enough the company also was forced to lower their estimates for 2007 on the weakening mortgage banking business. Earlier this year the company had provided guidance of between $7.40 and $7.80 a share, but were forced to lower these estimates today. Now the company is expecting to see between $7.00 and $7.40 for the full year 2007.
Shares of Capital One are trading down 4.8% in after hours trading, falling $3.75 down to $73.59.
Michael Fowlkes has worked as a stock trader for seven years and spent the last two years working as an analyst for the online investment advisory service Investor's Observer.
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