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Wall Street's Insights Into Key Metrics Ahead of Capital One (COF) Q3 Earnings

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The upcoming report from Capital One (COF - Free Report) is expected to reveal quarterly earnings of $3.70 per share, indicating a decline of 16.9% compared to the year-ago period. Analysts forecast revenues of $9.79 billion, representing an increase of 4.5% year over year.

The current level reflects a downward revision of 1.7% 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.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

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.

The average prediction of analysts places 'Total net revenue- Credit Card' at $7.10 billion. The estimate suggests a change of +7.1% year over year.

Analysts predict that the 'Total net revenue- Consumer Banking' will reach $2.23 billion. The estimate indicates a year-over-year change of -1.9%.

Analysts expect 'Total net revenue- Credit Card- Domestic' to come in at $6.73 billion. The estimate indicates a year-over-year change of +7.3%.

The combined assessment of analysts suggests that 'Total net revenue- Commercial Banking' will likely reach $878.30 million. The estimate indicates a year-over-year change of -3.4%.

Analysts' assessment points toward 'Average Balance - Total interest-earning assets' reaching $452.68 billion. Compared to the present estimate, the company reported $443.53 billion in the same quarter last year.

According to the collective judgment of analysts, 'Net Interest Margin' should come in at 6.9%. The estimate is in contrast to the year-ago figure of 6.7%.

Based on the collective assessment of analysts, 'Efficiency Ratio' should arrive at 52.5%. The estimate compares to the year-ago value of 51.9%.

Analysts forecast 'Tier 1 Capital Ratio' to reach 14.8%. The estimate is in contrast to the year-ago figure of 14.3%.

The consensus among analysts is that 'Net charge-off rate - Credit Card' will reach 5.5%. The estimate compares to the year-ago value of 4.4%.

The collective assessment of analysts points to an estimated 'Net charge-off rate - Credit Card - International card businesses' of 5.2%. The estimate is in contrast to the year-ago figure of 4.9%.

It is projected by analysts that the 'Total Capital Ratio' will reach 16.4%. The estimate compares to the year-ago value of 16.2%.

The consensus estimate for 'Net charge-off rate - Credit Card - Domestic credit card' stands at 5.6%. Compared to the present estimate, the company reported 4.4% in the same quarter last year.

View all Key Company Metrics for Capital One here>>>

Capital One shares have witnessed a change of +4.4% in the past month, in contrast to the Zacks S&P 500 composite's +4.5% move. With a Zacks Rank #3 (Hold), COF is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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