Capital One (COF) reported $9.01 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 9.5%. EPS of $3.52 for the same period compares to $4.96 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $9.17 billion, representing a surprise of -1.76%. The company delivered an EPS surprise of +6.34%, with the consensus EPS estimate being $3.31.
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.
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:
- Efficiency Ratio: 53.2% compared to the 54.55% average estimate based on 15 analysts.
- Average Balance – Total interest-earning assets: $439.14 billion versus $436.75 billion estimated by 15 analysts on average.
- Net Interest Margin: 6.48% compared to the 6.69% average estimate based on 14 analysts.
- Net charge-off rate: 2.82% compared to the 2.49% average estimate based on 14 analysts.
- Tier 1 Capital Ratio: 14% compared to the 13.91% average estimate based on 10 analysts.
- Net charge-off rate – Credit Card: 4.41% compared to the 4.39% average estimate based on 10 analysts.
- Net charge-off rate – Commercial Banking: 1.62% versus the 10-analyst average estimate of 0.31%.
- Total net revenue- Commercial Banking: $889 million versus the seven-analyst average estimate of $946.08 million. The reported number represents a year-over-year change of -2%.
- Total net revenue- Consumer Banking: $2.42 billion versus $2.46 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +7.8% change.
- Total net revenue- Credit Card- Domestic: $5.88 billion compared to the $5.86 billion average estimate based on seven analysts. The reported number represents a change of +17.9% year over year.
- Total net revenue- Credit Card: $6.23 billion compared to the $6.19 billion average estimate based on seven analysts. The reported number represents a change of +17.3% year over year.
- Total net revenue- Other: -$521 million versus -$473.89 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +129.5% change.
View all Key Company Metrics for Capital One here>>>
Shares of Capital One have returned +8.9% over the past month versus the Zacks S&P 500 composite’s +3.6% 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.
(We are reissuing this article to correct a mistake. The original article, issued on July 20, 2023, should no longer be relied upon.)
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Capital One Financial Corporation (COF) : Free Stock Analysis Report
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