Capital One shares slide after a double miss. Here's why we're staying the course

capital one shares slid about 2% after reporting a double miss on first-quarter earnings. revenue rose 52% year-over-year to $15.23 billion, but missed the $15.36 billion estimate. adjusted earnings per share of $4.42 also fell short of the $4.55 consensus. the top-line miss was driven by net interest income, where a 7.87% margin was below the estimated 8.2%. the company cited fewer days in the quarter and lower average credit card loans. non-interest income was a bright spot, with net discount and interchange fees rising 2% quarter-over-quarter to $1.964 billion. expenses of $8.46 billion were higher than expected, but included $893 million in one-time costs related to the discover acquisition. provisions for credit losses were about $4.1 billion, slightly worse than expected, with a $230 million reserve build primarily in auto lending. the stock trades at less than 10.5 times the 2026 eps estimate. the club is reiterating its rating but lowering its price target to $255 from $270.