Capital One (COF) Reports Q3 Earnings: What Key Metrics Have to Say

Core Insights - Capital One reported revenue of $10.01 billion for Q3 2024, a 6.9% increase year-over-year, exceeding the Zacks Consensus Estimate of $9.82 billion by 2.01% [1] - Earnings per share (EPS) for the quarter was $4.51, up from $4.45 in the same quarter last year, with an EPS surprise of 21.89% compared to the consensus estimate of $3.70 [1] Financial Performance Metrics - Average balance of total interest-earning assets was $454.48 billion, slightly above the estimated $452.68 billion [1] - Net interest margin stood at 7.1%, surpassing the average estimate of 6.9% [1] - Net charge-off rate was reported at 3.3%, compared to the average estimate of 3.2% [1] - Efficiency ratio was 53.1%, higher than the estimated 52.5% [1] Segment Performance - Total net revenue from Credit Card was $7.25 billion, exceeding the average estimate of $7.10 billion, reflecting a year-over-year increase of 9.4% [1] - Total net revenue from Consumer Banking was $2.21 billion, slightly below the average estimate of $2.23 billion, showing a year-over-year decline of 2.9% [1] - Total net revenue from Credit Card-Domestic was $6.87 billion, above the estimated $6.73 billion, marking a 9.6% increase year-over-year [1] - Total net revenue from Other was reported at -$336 million, better than the average estimate of -$416.36 million, representing a year-over-year change of -24.5% [1] - Total net revenue from Commercial Banking was $888 million, slightly above the average estimate of $878.30 million, indicating a year-over-year decline of 2.3% [1] Stock Performance - Capital One shares have returned +5.4% over the past month, outperforming the Zacks S&P 500 composite's +1.5% change [2] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [2]