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Capital One (COF) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
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For the quarter ended June 2024, Capital One (COF - Free Report) reported revenue of $9.51 billion, up 5.5% over the same period last year. EPS came in at $3.14, compared to $3.52 in the year-ago quarter.
The reported revenue represents a surprise of -0.03% over the Zacks Consensus Estimate of $9.51 billion. With the consensus EPS estimate being $3.28, the EPS surprise was -4.27%.
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.
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:
Net Interest Margin: 6.7% versus 6.7% estimated by five analysts on average.
Net charge-off rate: 3.4% compared to the 3.3% average estimate based on four analysts.
Efficiency Ratio: 52% versus 53.9% estimated by four analysts on average.
Average Balance - Total interest-earning assets: $450.91 billion versus the four-analyst average estimate of $450.15 billion.
Net charge-off rate - Consumer Banking: 1.9% versus the three-analyst average estimate of 1.8%.
Net charge-off rate - Commercial Banking: 0.2% compared to the 0.5% average estimate based on three analysts.
Net charge-off rate - Credit Card - International card businesses: 5% compared to the 5.7% average estimate based on two analysts.
Total net revenue- Credit Card: $6.80 billion compared to the $6.85 billion average estimate based on eight analysts. The reported number represents a change of +9.2% year over year.
Total net revenue- Consumer Banking: $2.20 billion versus $2.20 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -9.1% change.
Total net revenue- Credit Card- Domestic: $6.44 billion compared to the $6.46 billion average estimate based on seven analysts. The reported number represents a change of +9.5% year over year.
Total net revenue- Other: -$371 million versus the seven-analyst average estimate of -$443.27 million. The reported number represents a year-over-year change of -28.8%.
Total net revenue- Commercial Banking: $880 million versus $869.94 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -1% change.
Shares of Capital One have returned +5.4% over the past month versus the Zacks S&P 500 composite's +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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Capital One (COF) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
For the quarter ended June 2024, Capital One (COF - Free Report) reported revenue of $9.51 billion, up 5.5% over the same period last year. EPS came in at $3.14, compared to $3.52 in the year-ago quarter.
The reported revenue represents a surprise of -0.03% over the Zacks Consensus Estimate of $9.51 billion. With the consensus EPS estimate being $3.28, the EPS surprise was -4.27%.
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.
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:
- Net Interest Margin: 6.7% versus 6.7% estimated by five analysts on average.
- Net charge-off rate: 3.4% compared to the 3.3% average estimate based on four analysts.
- Efficiency Ratio: 52% versus 53.9% estimated by four analysts on average.
- Average Balance - Total interest-earning assets: $450.91 billion versus the four-analyst average estimate of $450.15 billion.
- Net charge-off rate - Consumer Banking: 1.9% versus the three-analyst average estimate of 1.8%.
- Net charge-off rate - Commercial Banking: 0.2% compared to the 0.5% average estimate based on three analysts.
- Net charge-off rate - Credit Card - International card businesses: 5% compared to the 5.7% average estimate based on two analysts.
- Total net revenue- Credit Card: $6.80 billion compared to the $6.85 billion average estimate based on eight analysts. The reported number represents a change of +9.2% year over year.
- Total net revenue- Consumer Banking: $2.20 billion versus $2.20 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -9.1% change.
- Total net revenue- Credit Card- Domestic: $6.44 billion compared to the $6.46 billion average estimate based on seven analysts. The reported number represents a change of +9.5% year over year.
- Total net revenue- Other: -$371 million versus the seven-analyst average estimate of -$443.27 million. The reported number represents a year-over-year change of -28.8%.
- Total net revenue- Commercial Banking: $880 million versus $869.94 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -1% change.
View all Key Company Metrics for Capital One here>>>Shares of Capital One have returned +5.4% over the past month versus the Zacks S&P 500 composite's +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.