Capital One Warns Full-Year Profit Will Miss Outlook
Capital One Financial said on Thursday it expects to report fourth-quarter earnings of around 60 cents per share, and warned that its full-year results would fall below its previous outlook.
The credit card issuer and banking company said it expects full-year earnings of around $3.97 per share, below its previous expectation of "about $5.00 per share". It blamed higher provision expense and additional legal reserves.
McLean, Virginia-based Capital One also said it expects earnings from continuing operations of around 85 cents per share for the fourth quarter. The company is due to report its quarterly results on Jan. 23.
In November, the company raised its forecast for charge-offs in 2008 to between $4.9 billion and the mid-$5 billion range from a previous outlook of $4.9 billion, and said more customers had difficulty paying their bills in October than in the third quarter.
In December, it said in filings that it expects to take a charge of about $80 million in the fourth quarter to settle an anti-trust lawsuit brought by American Express .