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Capital One (COF) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
COFCapital One(COF) ZACKS·2024-07-23 23:36

Core Insights - For the quarter ended June 2024, Capital One reported revenue of 9.51billion,reflectingayear−over−yearincreaseof5.59.51 billion, reflecting a year-over-year increase of 5.5% [1] - The earnings per share (EPS) was 3.14, down from 3.52inthesamequarterlastyear,indicatingadecline[1]−ThereportedrevenuewasslightlybelowtheZacksConsensusEstimateby−0.033.52 in the same quarter last year, indicating a decline [1] - The reported revenue was slightly below the Zacks Consensus Estimate by -0.03%, while the EPS fell short by -4.27% compared to the consensus estimate [1] Financial Metrics - Net Interest Margin stood at 6.7%, matching the average estimate from five analysts [2] - The net charge-off rate was reported at 3.4%, slightly above the average estimate of 3.3% from four analysts [2] - The Efficiency Ratio was 52%, better than the estimated 53.9% from four analysts [2] - Average Balance of Total interest-earning assets was 450.91 billion, exceeding the estimate of 450.15billion[2]−ConsumerBankingnetcharge−offratewas1.9450.15 billion [2] - Consumer Banking net charge-off rate was 1.9%, higher than the estimated 1.8% [2] - Commercial Banking net charge-off rate was 0.2%, lower than the estimated 0.5% [2] - International credit card businesses net charge-off rate was 5%, below the estimate of 5.7% [2] Revenue Breakdown - Total net revenue from Credit Card was 6.80 billion, slightly below the average estimate of 6.85billion,butshowingayear−over−yearincreaseof9.26.85 billion, but showing a year-over-year increase of 9.2% [2] - Total net revenue from Consumer Banking was 2.20 billion, matching the estimate but representing a decline of 9.1% year-over-year [2] - Total net revenue from Domestic Credit Card was 6.44billion,slightlybelowtheestimateof6.44 billion, slightly below the estimate of 6.46 billion, with a year-over-year increase of 9.5% [2] - Total net revenue from Other was reported at -371million,betterthantheestimateof−371 million, better than the estimate of -443.27 million, reflecting a year-over-year decline of 28.8% [2] - Total net revenue from Commercial Banking was 880million,exceedingtheestimateof880 million, exceeding the estimate of 869.94 million, with a year-over-year decrease of 1% [2] Stock Performance - Capital One shares have returned +5.4% over the past month, outperforming the Zacks S&P 500 composite's +2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]