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Capital One (COF) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended September 2023, Capital One (COF - Free Report) reported revenue of $9.37 billion, up 6.4% over the same period last year. EPS came in at $4.45, compared to $4.20 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $9.18 billion, representing a surprise of +2.01%. The company delivered an EPS surprise of +36.09%, with the consensus EPS estimate being $3.27.
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.
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:
Average Balance - Total interest-earning assets: $443.53 billion versus $440.88 billion estimated by 12 analysts on average.
Net Interest Margin: 6.7% compared to the 6.6% average estimate based on 12 analysts.
Net charge-off rate: 2.6% versus the 11-analyst average estimate of 2.7%.
Efficiency Ratio: 51.9% compared to the 54.7% average estimate based on 11 analysts.
Tier 1 Capital Ratio: 14.3% versus 13.9% estimated by eight analysts on average.
Net charge-off rate - Credit Card: 4.4% compared to the 4.7% average estimate based on seven analysts.
Net charge-off rate - Credit Card - International card businesses: 4.9% compared to the 4.8% average estimate based on seven analysts.
Total net revenue- Commercial Banking: $909 million compared to the $945.44 million average estimate based on five analysts. The reported number represents a change of -10.7% year over year.
Total net revenue- Consumer Banking: $2.28 billion versus $2.45 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -6.8% change.
Total net revenue- Credit Card- Domestic: $6.27 billion compared to the $6.18 billion average estimate based on five analysts. The reported number represents a change of +15.1% year over year.
Total net revenue- Credit Card: $6.63 billion versus $6.52 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +14.9% change.
Total net revenue- Other: -$445 million versus the four-analyst average estimate of -$367.35 million. The reported number represents a year-over-year change of +6%.
Shares of Capital One have returned -6.8% over the past month versus the Zacks S&P 500 composite's -3.4% 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) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended September 2023, Capital One (COF - Free Report) reported revenue of $9.37 billion, up 6.4% over the same period last year. EPS came in at $4.45, compared to $4.20 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $9.18 billion, representing a surprise of +2.01%. The company delivered an EPS surprise of +36.09%, with the consensus EPS estimate being $3.27.
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.
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:
- Average Balance - Total interest-earning assets: $443.53 billion versus $440.88 billion estimated by 12 analysts on average.
- Net Interest Margin: 6.7% compared to the 6.6% average estimate based on 12 analysts.
- Net charge-off rate: 2.6% versus the 11-analyst average estimate of 2.7%.
- Efficiency Ratio: 51.9% compared to the 54.7% average estimate based on 11 analysts.
- Tier 1 Capital Ratio: 14.3% versus 13.9% estimated by eight analysts on average.
- Net charge-off rate - Credit Card: 4.4% compared to the 4.7% average estimate based on seven analysts.
- Net charge-off rate - Credit Card - International card businesses: 4.9% compared to the 4.8% average estimate based on seven analysts.
- Total net revenue- Commercial Banking: $909 million compared to the $945.44 million average estimate based on five analysts. The reported number represents a change of -10.7% year over year.
- Total net revenue- Consumer Banking: $2.28 billion versus $2.45 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -6.8% change.
- Total net revenue- Credit Card- Domestic: $6.27 billion compared to the $6.18 billion average estimate based on five analysts. The reported number represents a change of +15.1% year over year.
- Total net revenue- Credit Card: $6.63 billion versus $6.52 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +14.9% change.
- Total net revenue- Other: -$445 million versus the four-analyst average estimate of -$367.35 million. The reported number represents a year-over-year change of +6%.
View all Key Company Metrics for Capital One here>>>Shares of Capital One have returned -6.8% over the past month versus the Zacks S&P 500 composite's -3.4% 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.