In its upcoming report, Capital One (COF) is predicted by Wall Street analysts to post quarterly earnings of $4.23 per share, reflecting a decline of 6.2% compared to the same period last year. Revenues are forecasted to be $14.9 billion, representing a year-over-year increase of 48.8%.
The consensus EPS estimate for the quarter has undergone a downward revision of 2.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship 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.
Bearing this in mind, let's now explore the average estimates of specific Capital One metrics that are commonly monitored and projected by Wall Street analysts.
Analysts forecast 'Total net revenue- Commercial Banking' to reach $1.02 billion. The estimate points to a change of +15% from the year-ago quarter.
The average prediction of analysts places 'Total net revenue- Consumer Banking' at $2.79 billion. The estimate suggests a change of +26.3% year over year.
The consensus estimate for 'Total net revenue- Credit Card- Domestic' stands at $10.66 billion. The estimate points to a change of +55.1% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Total net revenue- Credit Card' of $11.30 billion. The estimate suggests a change of +55.8% year over year.
The consensus among analysts is that 'Efficiency Ratio' will reach 54.1%. Compared to the present estimate, the company reported 53.1% in the same quarter last year.
Analysts predict that the 'Net Interest Margin' will reach 8.2%. Compared to the present estimate, the company reported 7.1% in the same quarter last year.
Analysts' assessment points toward 'Average Balance - Total interest-earning assets' reaching $577.08 billion. The estimate compares to the year-ago value of $454.48 billion.
The combined assessment of analysts suggests that 'Net charge-off rate' will likely reach 3.1%. The estimate compares to the year-ago value of 3.3%.
Based on the collective assessment of analysts, 'Tier 1 Leverage Ratio' should arrive at 12.1%. The estimate is in contrast to the year-ago figure of 11.6%.
Analysts expect 'Net charge-off rate - Credit Card' to come in at 4.7%. The estimate compares to the year-ago value of 5.6%.
It is projected by analysts that the 'Total Capital Ratio' will reach 16.6%. The estimate compares to the year-ago value of 16.6%.
According to the collective judgment of analysts, 'Net charge-off rate - Credit Card - International card businesses' should come in at 5.0%. The estimate compares to the year-ago value of 5.2%.
View all Key Company Metrics for Capital One here>>>
Shares of Capital One have experienced a change of -4.7% in the past month compared to the +0.9% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), COF is expected to outperform 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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