Capital One (COF) Q2 Earnings on the Horizon: Analysts' Insights on Key Performance Measures

Core Viewpoint - The upcoming earnings report for Capital One (COF) is anticipated to show significant growth in both earnings per share and revenue compared to the previous year, indicating a positive outlook for the company [1]. Earnings Estimates - Analysts expect quarterly earnings of $3.83 per share, reflecting a 22% increase year-over-year [1]. - Revenue is forecasted to reach $12.22 billion, representing a 28.6% year-over-year increase [1]. - Over the last 30 days, the consensus EPS estimate has been revised upward by 0.6%, indicating analysts' positive reassessment of the company's performance [2]. Revenue Projections - Total net revenue from Commercial Banking is projected to be $913.72 million, a year-over-year increase of 3.8% [5]. - Total net revenue from Credit Cards is estimated at $7.48 billion, showing a 10.1% increase year-over-year [5]. - Domestic Credit Card revenue is expected to reach $7.11 billion, reflecting a 10.3% year-over-year change [5]. - Consumer Banking revenue is anticipated to be $2.30 billion, indicating a 4.7% increase from the previous year [6]. Key Financial Metrics - The Efficiency Ratio is projected to be 54.3%, up from 52.0% in the same quarter last year [6]. - Net Interest Margin is expected to reach 7.3%, compared to 6.7% a year ago [6]. - The Net charge-off rate is forecasted at 3.5%, slightly higher than the 3.4% reported in the same quarter last year [7]. - Average Balance of Total interest-earning assets is estimated at $483.76 billion, compared to $450.91 billion a year ago [7]. Capital Ratios - The Tier 1 Capital Ratio is expected to be 15.1%, up from 14.5% in the previous year [8]. - The Net charge-off rate for Domestic Credit Cards is projected at 5.7%, down from 6.1% last year [8]. - The Net charge-off rate for International card businesses is estimated at 4.8%, compared to 5.0% in the same quarter last year [8]. Stock Performance - Over the past month, Capital One shares have increased by 9.9%, outperforming the Zacks S&P 500 composite, which rose by 4.2% [9].