Capital One(COF) ZACKS·2024-10-17 15:06Core Viewpoint - The market anticipates a year-over-year decline in Capital One's earnings despite an increase in revenues, with the upcoming earnings report expected to significantly influence the stock price based on actual results compared to estimates [1]. Earnings Expectations - Capital One is projected to report quarterly earnings of 9.79 billion, which is a 4.5% increase from the same quarter last year [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.69% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [3]. - The Most Accurate Estimate for Capital One is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.11% [6][7]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading can indicate the likelihood of actual earnings deviating from consensus estimates, with a focus on the Most Accurate Estimate [4]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [5]. Historical Performance - In the last reported quarter, Capital One's actual earnings of 3.28, resulting in a surprise of -4.27% [8]. - Over the past four quarters, Capital One has only surpassed consensus EPS estimates once [8]. Conclusion - Capital One does not appear to be a compelling candidate for an earnings beat based on current estimates and revisions, suggesting that investors should consider additional factors before making investment decisions [9].