The upcoming report from Capital One (COF) is expected to reveal quarterly earnings of $3.83 per share, indicating an increase of 22% compared to the year-ago period. Analysts forecast revenues of $12.22 billion, representing an increase of 28.6% year over year.
Over the last 30 days, there has been an upward revision of 0.6% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
With that in mind, let's delve into the average projections of some Capital One metrics that are commonly tracked and projected by analysts on Wall Street.
The combined assessment of analysts suggests that 'Total net revenue- Commercial Banking' will likely reach $913.72 million. The estimate indicates a year-over-year change of +3.8%.
The average prediction of analysts places 'Total net revenue- Credit Card' at $7.48 billion. The estimate indicates a year-over-year change of +10.1%.
It is projected by analysts that the 'Total net revenue- Credit Card- Domestic' will reach $7.11 billion. The estimate points to a change of +10.3% from the year-ago quarter.
According to the collective judgment of analysts, 'Total net revenue- Consumer Banking' should come in at $2.30 billion. The estimate points to a change of +4.7% from the year-ago quarter.
Analysts predict that the 'Efficiency Ratio' will reach 54.3%. Compared to the present estimate, the company reported 52.0% in the same quarter last year.
Analysts' assessment points toward 'Net Interest Margin' reaching 7.3%. The estimate is in contrast to the year-ago figure of 6.7%.
The consensus among analysts is that 'Net charge-off rate' will reach 3.5%. Compared to the current estimate, the company reported 3.4% in the same quarter of the previous year.
Analysts expect 'Average Balance - Total interest-earning assets' to come in at $483.76 billion. The estimate compares to the year-ago value of $450.91 billion.
The collective assessment of analysts points to an estimated 'Net charge-off rate - Credit Card' of 5.7%. The estimate compares to the year-ago value of 6.0%.
Based on the collective assessment of analysts, 'Tier 1 Capital Ratio' should arrive at 15.1%. The estimate is in contrast to the year-ago figure of 14.5%.
Analysts forecast 'Net charge-off rate - Credit Card - Domestic credit card' to reach 5.7%. The estimate is in contrast to the year-ago figure of 6.1%.
The consensus estimate for 'Net charge-off rate - Credit Card - International card businesses' stands at 4.8%. Compared to the present estimate, the company reported 5.0% in the same quarter last year.
View all Key Company Metrics for Capital One here>>>
Over the past month, shares of Capital One have returned +9.9% versus the Zacks S&P 500 composite's +4.2% change. Currently, COF carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Capital One Financial Corporation (COF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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