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In its upcoming report, Capital One (COF) is predicted by Wall Street analysts to post quarterly earnings of $3.75 per share, reflecting an increase of 16.8% compared to the same period last year. Revenues are forecasted to be $10.03 billion, representing a year-over-year increase of 6.7%.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
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 use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
In light of this perspective, let's dive into the average estimates of certain Capital One metrics that are commonly tracked and forecasted by Wall Street analysts.
The average prediction of analysts places 'Total net revenue- Credit Card' at $7.27 billion. The estimate indicates a change of +7.8% from the prior-year quarter.
According to the collective judgment of analysts, 'Total net revenue- Consumer Banking' should come in at $2.18 billion. The estimate indicates a change of +0.4% from the prior-year quarter.
The consensus estimate for 'Total net revenue- Credit Card- Domestic' stands at $6.90 billion. The estimate points to a change of +8.1% from the year-ago quarter.
Analysts expect 'Total net revenue- Commercial Banking' to come in at $853.98 million. The estimate indicates a year-over-year change of -3%.
The combined assessment of analysts suggests that 'Efficiency Ratio' will likely reach 53.4%. The estimate is in contrast to the year-ago figure of 54.6%.
It is projected by analysts that the 'Net charge-off rate' will reach 3.6%. The estimate is in contrast to the year-ago figure of 3.3%.
Analysts forecast 'Net Interest Margin' to reach 7.0%. The estimate is in contrast to the year-ago figure of 6.7%.
The consensus among analysts is that 'Average Balance - Total interest-earning assets' will reach $461.03 billion. The estimate compares to the year-ago value of $447.80 billion.