Capitol One Financial(COF - Cramer's Take - Stockpickr) posted an 18% drop in first-quarter earnings after Thursday's closing bell, and it reported a grim outlook for its credit card business due to the downturn in the economy.
The company reported earnings of $548.5 million, or $1.47 a share, for the period. That compares with the $675 million, or $1.62 a share, it earned in the same quarter last year.
Those results include a $200 million benefit related to the initial public offering of Visa(V - Cramer's Take - Stockpickr). They were weighed down by the addition of $310 million to the company's loan-loss reserves, and charges related to the closing of its home-lending unit, GreenPoint Mortgage.
