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Capital One (COF) Reports Q4 Earnings: What Key Metrics Have to Say
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Capital One (COF - Free Report) reported $9.51 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 5.2%. EPS of $2.24 for the same period compares to $2.82 a year ago.
The reported revenue represents a surprise of +0.56% over the Zacks Consensus Estimate of $9.45 billion. With the consensus EPS estimate being $2.50, the EPS surprise was -10.40%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Capital One performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Average Balance - Total interest-earning assets: $446.93 billion compared to the $448.46 billion average estimate based on 14 analysts.
Net Interest Margin: 6.7% compared to the 6.7% average estimate based on 14 analysts.
Efficiency Ratio: 55.2% versus 55.3% estimated by 14 analysts on average.
Net charge-off rate: 3.2% versus 3% estimated by 13 analysts on average.
Tier 1 Capital Ratio: 14.2% versus the 10-analyst average estimate of 14.5%.
Net charge-off rate - Credit Card - Domestic credit card: 5.4% compared to the 5% average estimate based on nine analysts.
Net charge-off rate - Credit Card - International card businesses: 4.9% compared to the 5% average estimate based on nine analysts.
Total net revenue- Credit Card: $6.80 billion compared to the $6.73 billion average estimate based on six analysts. The reported number represents a change of +13.6% year over year.
Total net revenue- Consumer Banking: $2.11 billion versus $2.35 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -16.5% change.
Total net revenue- Credit Card- Domestic: $6.44 billion compared to the $6.36 billion average estimate based on six analysts. The reported number represents a change of +13.5% year over year.
Total net revenue- Other: -$266 million versus -$501.92 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +3.9% change.
Total net revenue- Commercial Banking: $862 million compared to the $914.36 million average estimate based on six analysts. The reported number represents a change of +10.4% year over year.
Shares of Capital One have returned -0.1% over the past month versus the Zacks S&P 500 composite's +2.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Capital One (COF) Reports Q4 Earnings: What Key Metrics Have to Say
Capital One (COF - Free Report) reported $9.51 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 5.2%. EPS of $2.24 for the same period compares to $2.82 a year ago.
The reported revenue represents a surprise of +0.56% over the Zacks Consensus Estimate of $9.45 billion. With the consensus EPS estimate being $2.50, the EPS surprise was -10.40%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Capital One performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Average Balance - Total interest-earning assets: $446.93 billion compared to the $448.46 billion average estimate based on 14 analysts.
- Net Interest Margin: 6.7% compared to the 6.7% average estimate based on 14 analysts.
- Efficiency Ratio: 55.2% versus 55.3% estimated by 14 analysts on average.
- Net charge-off rate: 3.2% versus 3% estimated by 13 analysts on average.
- Tier 1 Capital Ratio: 14.2% versus the 10-analyst average estimate of 14.5%.
- Net charge-off rate - Credit Card - Domestic credit card: 5.4% compared to the 5% average estimate based on nine analysts.
- Net charge-off rate - Credit Card - International card businesses: 4.9% compared to the 5% average estimate based on nine analysts.
- Total net revenue- Credit Card: $6.80 billion compared to the $6.73 billion average estimate based on six analysts. The reported number represents a change of +13.6% year over year.
- Total net revenue- Consumer Banking: $2.11 billion versus $2.35 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -16.5% change.
- Total net revenue- Credit Card- Domestic: $6.44 billion compared to the $6.36 billion average estimate based on six analysts. The reported number represents a change of +13.5% year over year.
- Total net revenue- Other: -$266 million versus -$501.92 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +3.9% change.
- Total net revenue- Commercial Banking: $862 million compared to the $914.36 million average estimate based on six analysts. The reported number represents a change of +10.4% year over year.
View all Key Company Metrics for Capital One here>>>Shares of Capital One have returned -0.1% over the past month versus the Zacks S&P 500 composite's +2.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.