Wall Street analysts expect Capital One (COF) to post quarterly earnings of $5.08 per share in its upcoming report, which indicates a year-over-year decline of 7.3%. Revenues are expected to be $15.7 billion, up 25.6% from the year-ago quarter.
Over the last 30 days, there has been an upward revision of 4.3% 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.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements 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.
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.
According to the collective judgment of analysts, 'Total net revenue- Commercial Banking' should come in at $872.22 million. The estimate indicates a change of -6.9% from the prior-year quarter.
Analysts expect 'Total net revenue- Credit Card- Domestic' to come in at $11.11 billion. The estimate points to a change of +29.6% from the year-ago quarter.
Analysts predict that the 'Total net revenue- Credit Card' will reach $11.79 billion. The estimate suggests a change of +29.6% year over year.
The average prediction of analysts places 'Total net revenue- Consumer Banking' at $2.83 billion. The estimate suggests a change of +10.7% year over year.
The consensus among analysts is that 'Average Balance - Total interest-earning assets' will reach $614.27 billion. Compared to the current estimate, the company reported $524.93 billion in the same quarter of the previous year.
The consensus estimate for 'Net Interest Margin' stands at 8.1%. The estimate compares to the year-ago value of 7.6%.
Analysts' assessment points toward 'Efficiency Ratio' reaching 54.8%. The estimate compares to the year-ago value of 56.0%.
Based on the collective assessment of analysts, 'Net charge-off rate' should arrive at 3.3%. Compared to the present estimate, the company reported 3.2% in the same quarter last year.
The combined assessment of analysts suggests that 'Net charge-off rate - Credit Card - International card businesses' will likely reach 5.0%. The estimate is in contrast to the year-ago figure of 5.2%.
Analysts forecast 'Net charge-off rate - Credit Card' to reach 4.8%. The estimate is in contrast to the year-ago figure of 5.2%.
The collective assessment of analysts points to an estimated 'Net charge-off rate - Credit Card - Domestic credit card' of 4.8%. The estimate compares to the year-ago value of 5.3%.
It is projected by analysts that the 'Net Interest Income' will reach $12.47 billion. The estimate is in contrast to the year-ago figure of $10.00 billion.
View all Key Company Metrics for Capital One here>>>Shares of Capital One have demonstrated returns of +4% over the past month compared to the Zacks S&P 500 composite's +0.5% change. With a Zacks Rank #3 (Hold), COF is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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