Analysts on Wall Street project that Capital One (COF) will announce quarterly earnings of $5.45 per share in its forthcoming report, representing a decline of 8.4% year over year. Revenues are projected to reach $16.11 billion, increasing 4.9% from the same quarter last year.
The current level reflects an upward revision of 0.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
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.
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.
According to the collective judgment of analysts, 'Total net revenue- Commercial Banking' should come in at $851.02 million. The estimate points to a change of -5.9% from the year-ago quarter.
Analysts forecast 'Total net revenue- Credit Card- Domestic' to reach $11.25 billion. The estimate indicates a year-over-year change of +3%.
The consensus estimate for 'Total net revenue- Credit Card' stands at $11.90 billion. The estimate points to a change of +2.5% from the year-ago quarter.
Based on the collective assessment of analysts, 'Total net revenue- Consumer Banking' should arrive at $3.13 billion. The estimate suggests a change of +10.5% year over year.
It is projected by analysts that the 'Efficiency Ratio' will reach 56.4%. The estimate is in contrast to the year-ago figure of 53.8%.
Analysts predict that the 'Average Balance - Total interest-earning assets' will reach $612.48 billion. Compared to the current estimate, the company reported $593.25 billion in the same quarter of the previous year.
Analysts' assessment points toward 'Net charge-off rate' reaching 2.9%. The estimate compares to the year-ago value of 3.2%.
The consensus among analysts is that 'Net Interest Margin' will reach 8.3%. The estimate compares to the year-ago value of 8.4%.
Analysts expect 'Net charge-off rate - Credit Card - International card businesses' to come in at 5.0%. Compared to the current estimate, the company reported 5.1% in the same quarter of the previous year.
The average prediction of analysts places 'Net charge-off rate - Credit Card' at 4.1%. Compared to the current estimate, the company reported 4.6% in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Net charge-off rate - Credit Card - Domestic credit card' will likely reach 4.1%. The estimate compares to the year-ago value of 4.6%.
The collective assessment of analysts points to an estimated 'Net Interest Income' of $12.71 billion. The estimate is in contrast to the year-ago figure of $12.40 billion.
View all Key Company Metrics for Capital One here>>>Shares of Capital One have experienced a change of -4.4% in the past month compared to the +1.4% move of the Zacks S&P 500 composite. 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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