3 Stocks to Watch on Friday: eBay Inc (EBAY), Visa Inc (V) and Capital One Financial Corp. (COF)

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COF - 3 Stocks to Watch on Friday: eBay Inc (EBAY), Visa Inc (V) and Capital One Financial Corp. (COF)

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Thursday was a slow day for U.S. equities amid a fractional decline in crude oil. The S&P 500 Index slipped marginally, the Dow Jones Industrial Average dipped 0.1% and the Nasdaq Composite put together a slight 0.1% gain.

3 Stocks to Watch on Friday: eBay Inc (EBAY), Visa Inc (V) and Capital One Financial Corp. (COF)As we enter the final trading day of the week, several companies — including Capital One Financial Corp. (NYSE:COF), eBay Inc (NASDAQ:EBAY) and Visa Inc (NYSE:V) — are on the move following their quarterly earnings reports.

Here’s what you need to know in the final trading day of the week.

Visa Inc (V)

V stock is headed higher after the credit card processor posted its third-quarter earnings results late afternoon yesterday.

Visa earned 86 cents per share — a 406% increase year-over-year, and 5 cents per share better than analysts’ outlook. Meanwhile, revenues of $4.57 billion were a 26% improvement from the year-ago quarter, and came in ahead of the $4.36 billion forecast from the pros.

The company’s volume growth surged to $1.9 trillion, a 38% improvement year-over-year. Visa also benefited from its European success, which saw more processed transactions and more payment volume. All told, cross-border volume growth came to 147%. Visa processed some 28.5 billion transactions in the quarter, which was 44% more than Q2 2016.

The company also reaffirmed its annual operating margin, which it still believes will be in the mid-60s for the full year. It also now sees EPS growth of about 20% on an adjusted, non-GAAP nominal dollar basis.

V stock is climbing more than 1% in early Friday trade.

Capital One Financial Corp. (COF)

Capital One Financial is making an even bigger push following its own second-quarter beat.

The financial institution earned $1 billion over its second quarter, or $1.94 per share, topping the year-ago figure of $942 million, or $1.69 per share. Adjusted earnings of $1.96 per share were better than Wall Street projections of $1.90 per share.

Revenues of $6.7 billion were 7% better year-over-year, and just slipped past analysts’ expectations for $6.67 billion.

A few other highlights included a 10% dip in provisions for credit losses, to $1.8 billion, and an efficiency ratio of 51%. Domestic Card period-end loans were up 2% to $92.9 billion, while Consumer Banking period-end loans edged 1% higher to $75 billion.

A few other highlights included a 10% dip in provisions for credit losses, to $1.8 billion, and an efficiency ratio of 51%. Domestic Card period-end loans were up 2% to $92.9 billion, while Consumer Banking period-end loans edged 1% higher to $75 billion.

eBay Inc (EBAY)

Lastly, red-hot EBAY stock is finally cooling down after a Street-beating Q2 earnings report, but outlook that disappointed the pros.

Ebay earned $27 million, or 2 cents per share, marking a massive 94% plunge year-over-year. On an adjusted basis, however, EBAY earnings came to 45 cents per share, which was 2 cents ahead of analyst projections. The top-line figure of $2.33 billion was a 4% improvement over last year and just enough to get past estimates of $2.31 billion.

Weighing on EBAY shares was third-quarter guidance, which included an adjusted earnings forecast of 46 cents to 48 cents per share. Wall Street was looking for 48 cents at the midpoint. Ebay did look better on the revenue front, forecasting revenues of $2.35 billion to $2.39 billion, better than analysts’ estimates of $2.32 billion.

Diving into the report, Marketplace gross merchandise volume was up 3% to $20.5 billion as reported, leading to a 4% increase in revenues there. StubHub GMV was down 5% to $1 billion, however, but resulted in a 5% improvement in sales. Classifieds revenues improved by 6% to $219 million.

The company now boasts 171 million global active buyers, up 2 million in the quarter.

Still, guidance had EBAY stock off by about 5% on Friday morning, putting a damper on a 25% year-to-date run in the shares.


Article printed from InvestorPlace Media, https://investorplace.com/2017/07/3-stocks-to-watch-on-friday-ebay-inc-ebay-visa-inc-v-and-capital-one-financial-corp-cof/.

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