In its upcoming report, Capital One (COF) is predicted by Wall Street analysts to post quarterly earnings of $4.63 per share, reflecting an increase of 14% compared to the same period last year. Revenues are forecasted to be $15.38 billion, representing a year-over-year increase of 53.8%.
Over the last 30 days, there has been a downward revision of 1.5% 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 use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
That said, let's delve into the average estimates of some Capital One metrics that Wall Street analysts commonly model and monitor.
Analysts' assessment points toward 'Total net revenue- Commercial Banking' reaching $841.62 million. The estimate indicates a change of -4.8% from the prior-year quarter.
Analysts expect 'Total net revenue- Consumer Banking' to come in at $2.78 billion. The estimate indicates a year-over-year change of +30.7%.
The average prediction of analysts places 'Total net revenue- Credit Card- Domestic' at $11.06 billion. The estimate points to a change of +62.5% from the year-ago quarter.
According to the collective judgment of analysts, 'Total net revenue- Credit Card' should come in at $11.73 billion. The estimate suggests a change of +63.7% year over year.
Analysts predict that the 'Net Interest Margin' will reach 8.2%. The estimate compares to the year-ago value of 6.9%.
The collective assessment of analysts points to an estimated 'Efficiency Ratio' of 53.5%. Compared to the current estimate, the company reported 59.0% in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Average Balance - Total interest-earning assets' should arrive at $602.08 billion. Compared to the current estimate, the company reported $462.77 billion in the same quarter of the previous year.
The consensus estimate for 'Net charge-off rate - Credit Card - International card businesses' stands at 5.1%. Compared to the present estimate, the company reported 5.0% in the same quarter last year.
Analysts forecast 'Net charge-off rate - Credit Card' to reach 5.1%. The estimate is in contrast to the year-ago figure of 6.1%.
The consensus among analysts is that 'Net charge-off rate' will reach 3.5%. Compared to the present estimate, the company reported 3.4% in the same quarter last year.
The combined assessment of analysts suggests that 'Net charge-off rate - Credit Card - Domestic credit card' will likely reach 5.0%. The estimate compares to the year-ago value of 6.2%.
It is projected by analysts that the 'Net Interest Income' will reach $12.34 billion. The estimate compares to the year-ago value of $8.01 billion.
View all Key Company Metrics for Capital One here>>>Over the past month, shares of Capital One have returned +12.7% versus the Zacks S&P 500 composite's +6% 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 >>>> .
Zacks' Research Chief Picks Stock Most Likely to "At Least Double"
Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.
See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Capital One Financial Corporation (COF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).