News

For the quarter ended March 2024, Capital One (COF) reported revenue of $9.4 billion, up 5.6% over the same period last year. EPS came in at $3.21, compared to $2.31 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $9.35 billion, representing a surprise of +0.60%. The company delivered an EPS surprise of -1.23%, with the consensus EPS estimate being $3.25.

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: 6.7% versus 6.7% estimated by 13 analysts on average.
• Average Balance - Total interest-earning assets: $447.80 billion versus $450.11 billion estimated by 13 analysts on average.
• Net charge-off rate: 3.3% versus the 12-analyst average estimate of 3.3%.
• Efficiency Ratio: 54.6% versus the 12-analyst average estimate of 54.5%.
• Net charge-off rate - Commercial Banking: 0.1% versus the 10-analyst average estimate of 0.4%.
• Net charge-off rate - Consumer Banking: 2% versus the nine-analyst average estimate of 2%.
• Net charge-off rate - Credit Card - Domestic credit card: 5.9% compared to the 5.7% average estimate based on nine analysts.
• Total net revenue- Credit Card: $6.75 billion versus the seven-analyst average estimate of $6.67 billion. The reported number represents a year-over-year change of +12.1%.
• Total net revenue- Consumer Banking: $2.17 billion compared to the $2.25 billion average estimate based on seven analysts. The reported number represents a change of -13% year over year.
• Total net revenue- Credit Card- Domestic: $6.38 billion versus $6.32 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +12.2% change.
• Total net revenue- Other: -$396 million compared to the -$449.41 million average estimate based on seven analysts. The reported number represents a change of -16.1% year over year.
• Total net revenue- Commercial Banking: $880 million compared to the $869.03 million average estimate based on seven analysts. The reported number represents a change of +2.3% year over year.

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

Shares of Capital One have returned +3% over the past month versus the Zacks S&P 500 composite's -3% 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.

Free – 5 Dividend Stocks to Fund Your Retirement

Zacks Investment Research has released a Special Report to help you prepare for retirement with 5 diverse stocks that pay whopping dividends. They cut across property management, upscale outlets, financial institutions, and a couple of strong energy producers.

5 Dividend Stocks to Include in Your Retirement Strategy is packed with unconventional wisdom and insights you won’t get from your neighborhood financial planner.

Download Now – Today It’s FREE >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.