CapitalSource Reports Unexpected Profit (CSE)

CapitalSource Inc CSE released financial results on Monday morning that beat Wall Street estimates when it reported an unexpected 2nd quarter profit. CapitalSource Inc (CSE) announced that it swung to a 2nd quarter profit, when it reported net income of $18 million, or 6 cents per share, compared to a net loss of $247 million, or 82 cents per share, a year earlier. According to a poll of analysts by Thomson Reuters, the average Wall Street estimate called for a loss of 10 cents per share. Executive chairman John K. Delaney said, "Our profitability and overall performance in the second quarter represent a turning point for CapitalSource and reflect the work we have done strategically and operationally over the last two years. The significant decline in quarterly provisions to only $25 million reflects general stabilization in the credit performance of our legacy loan portfolio and the effect of our provisioning across the last several quarters." CapitalSource Inc ended the previous trading day at $5.26 per share. The consensus price target of analysts covering the company's stock is $6.51 per share. Chevy Chase, Maryland based CapitalSource Inc. is a commercial lender that provides financial products to middle market businesses and offers depository products and services in southern and central California through its wholly owned subsidiary CapitalSource Bank. Read more from Benzinga's Company news.