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Here's What Key Metrics Tell Us About Capital One (COF) Q4 Earnings
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For the quarter ended December 2024, Capital One (COF - Free Report) reported revenue of $10.19 billion, up 7.2% over the same period last year. EPS came in at $3.09, compared to $2.24 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $10.16 billion, representing a surprise of +0.32%. The company delivered an EPS surprise of +16.17%, with the consensus EPS estimate being $2.66.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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:
Net Interest Margin: 7% versus the 10-analyst average estimate of 7.1%.
Net charge-off rate: 3.6% compared to the 3.5% average estimate based on nine analysts.
Efficiency Ratio: 59.8% versus the nine-analyst average estimate of 56.4%.
Average Balance - Total interest-earning assets: $460.64 billion versus $459.48 billion estimated by nine analysts on average.
Total Capital Ratio: 16.4% compared to the 16.2% average estimate based on five analysts.
Net charge-off rate - Credit Card: 6% compared to the 5.3% average estimate based on five analysts.
Net charge-off rate - Commercial Banking: 0.3% compared to the 0.3% average estimate based on five analysts.
Total net revenue- Credit Card: $7.36 billion versus the six-analyst average estimate of $7.40 billion. The reported number represents a year-over-year change of +8.4%.
Total net revenue- Consumer Banking: $2.14 billion versus $2.22 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +1.3% change.
Total net revenue- Credit Card- Domestic: $7 billion versus the five-analyst average estimate of $6.95 billion. The reported number represents a year-over-year change of +8.7%.
Total net revenue- Other: -$268 million versus -$402.73 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +0.8% change.
Total net revenue- Commercial Banking: $953 million versus the five-analyst average estimate of $859.94 million. The reported number represents a year-over-year change of +10.6%.
Shares of Capital One have returned +6.1% over the past month versus the Zacks S&P 500 composite's +1.2% 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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Here's What Key Metrics Tell Us About Capital One (COF) Q4 Earnings
For the quarter ended December 2024, Capital One (COF - Free Report) reported revenue of $10.19 billion, up 7.2% over the same period last year. EPS came in at $3.09, compared to $2.24 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $10.16 billion, representing a surprise of +0.32%. The company delivered an EPS surprise of +16.17%, with the consensus EPS estimate being $2.66.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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:
- Net Interest Margin: 7% versus the 10-analyst average estimate of 7.1%.
- Net charge-off rate: 3.6% compared to the 3.5% average estimate based on nine analysts.
- Efficiency Ratio: 59.8% versus the nine-analyst average estimate of 56.4%.
- Average Balance - Total interest-earning assets: $460.64 billion versus $459.48 billion estimated by nine analysts on average.
- Total Capital Ratio: 16.4% compared to the 16.2% average estimate based on five analysts.
- Net charge-off rate - Credit Card: 6% compared to the 5.3% average estimate based on five analysts.
- Net charge-off rate - Commercial Banking: 0.3% compared to the 0.3% average estimate based on five analysts.
- Total net revenue- Credit Card: $7.36 billion versus the six-analyst average estimate of $7.40 billion. The reported number represents a year-over-year change of +8.4%.
- Total net revenue- Consumer Banking: $2.14 billion versus $2.22 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +1.3% change.
- Total net revenue- Credit Card- Domestic: $7 billion versus the five-analyst average estimate of $6.95 billion. The reported number represents a year-over-year change of +8.7%.
- Total net revenue- Other: -$268 million versus -$402.73 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +0.8% change.
- Total net revenue- Commercial Banking: $953 million versus the five-analyst average estimate of $859.94 million. The reported number represents a year-over-year change of +10.6%.
View all Key Company Metrics for Capital One here>>>Shares of Capital One have returned +6.1% over the past month versus the Zacks S&P 500 composite's +1.2% 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.