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Analysts on Wall Street project that Capital One (COF) will announce quarterly earnings of $2.68 per share in its forthcoming report, representing an increase of 19.6% year over year. Revenues are projected to reach $10.13 billion, increasing 6.6% from the same quarter last year.
Over the last 30 days, there has been a downward revision of 2% 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 it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Capital One metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts predict that the 'Total net revenue- Credit Card' will reach $7.41 billion. The estimate indicates a change of +9% from the prior-year quarter.
The combined assessment of analysts suggests that 'Total net revenue- Consumer Banking' will likely reach $2.22 billion. The estimate suggests a change of +4.8% year over year.
Analysts expect 'Total net revenue- Credit Card- Domestic' to come in at $6.96 billion. The estimate indicates a year-over-year change of +8.2%.
Based on the collective assessment of analysts, 'Total net revenue- Commercial Banking' should arrive at $859.94 million. The estimate indicates a change of -0.2% from the prior-year quarter.
It is projected by analysts that the 'Net Interest Margin' will reach 7.1%. The estimate is in contrast to the year-ago figure of 6.7%.
According to the collective judgment of analysts, 'Net charge-off rate' should come in at 3.5%. The estimate is in contrast to the year-ago figure of 3.2%.
The consensus estimate for 'Efficiency Ratio' stands at 56.4%. The estimate compares to the year-ago value of 60.1%.
The collective assessment of analysts points to an estimated 'Average Balance - Total interest-earning assets' of $459.48 billion. Compared to the current estimate, the company reported $446.93 billion in the same quarter of the previous year.