Capital One Reports Loss on Mortgage Unit Shutdown
Capital One Financial posted a third quarter net loss of $81.6 million, or 21 cents per share, hurt by charges from shutting down its GreenPoint Mortgage business.
Shares of the credit card issuer and banking company slipped 60 cents at $65.40 in Thursday after-hours trade.
The McLean, Va.-based company's loss compares with a profit of $587.8 million, or $1.89 per share, in the year-ago period.
A Thomson Financial analyst poll predicted a loss of 30 cents per share on revenue of $4.13 billion. Analysts' estimates typically exclude one-time items.
Excluding the loss from discontinued operations of $898.0 million related to the shutdown of GreenPoint Mortgage, as announced in August 2007, earnings were $2.09 per share.
"Earnings from continuing operations in the third quarter grew 6.4 percent over the second quarter of 2007 driven by increased revenues which more than offset increased credit costs in the quarter," Gary L. Perlin, Capital One's chief financial officer, said in a statement.
"We also realized significant operating leverage. Continued cost discipline and capital management will be two key drivers of future shareholder returns," Perlin said.