COF Earnings Prediction
The chart below shows how COF performed 10 days before and after its earnings report, based on data from the past quarters. Typically, COF sees a -3.01% change in stock price 10 days leading up to the earnings, and a +4.81% change 10 days following the report. On the earnings day itself, the stock moves by -0.06%. This data can give you a slight idea of what to expect for the next quarter's release.
COF Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
9.66B
7.03%
5.52%
Gross Margin
--
--
--
Operating Margin
22.88%
-7.11%
217.78%
Net Margin
18.40%
-7.26%
182.21%
EPS
4.41
-0.90%
219.57%
No Data Available
COF Earnings Analysis
Capital One Financial Corp Corporation (COF.N) Earnings Conference Call
Positive
Strong Q3 Earnings Report: Capital One reported Q3 2024 earnings of $1.8 billion, translating to $4.41 per diluted share, with adjusted earnings per share at $4.51, reflecting a strong financial performance.
Pre-Provision Earnings Growth: Pre-provision earnings increased by 3% from the previous quarter to $4.7 billion, indicating robust operational efficiency and revenue generation.
Net Interest Margin Improvement: Net interest margin (NIM) improved to 7.11%, up 41 basis points from the prior quarter, driven by higher card and auto yields, showcasing effective interest income management.
Domestic Card Revenue Growth: The domestic card business saw a 10% year-over-year revenue increase, supported by a 5% growth in purchase volume and a $9.1 billion increase in ending loan balances, highlighting strong customer engagement and lending activity.
Capital Ratio Improvement: The common equity Tier 1 capital ratio rose to 13.6%, a 40 basis point increase from the previous quarter, reflecting a solid capital position and prudent financial management.
Negative
Credit Loss Provision Reduction: Provision for credit losses was $2,500,000,000 in the quarter, down $1,400,000,000 relative to the prior quarter, indicating a significant reduction in reserves that may signal underlying credit quality concerns.
Rising Non-Interest Expenses: Non-interest expense increased 7% driven by increases in both operating expense and marketing spend, reflecting rising costs that could pressure future profitability.
Consumer Banking Revenue Decline: Consumer Banking revenue for the quarter was down about 3% year over year, largely driven by higher deposit costs compared to the prior year quarter, indicating challenges in maintaining revenue growth.
Deteriorating Credit Quality: The charge-off rate for the quarter was 5.61%, up 83 basis points year over year, suggesting deteriorating credit quality despite previous improvements in credit metrics.
Operating Efficiency Decline: The expected full year 2024 annual operating efficiency ratio net of adjustments is now projected to be in the low 42s, indicating a decline from the previously guided 43.5 percent, reflecting increased operational challenges.
COF FAQs
How does COF typically perform around its earnings report dates?
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COF Earning Call Sentiment
Earnings call transcript: Capital One Q3 2024 earnings beat expectations
COF.N
-0.5%Positive
The earnings call presents a mixed outlook. While there are positive elements like increased liquidity reserves, improved NIM, and stable credit performance, there are also concerns about rising charge-off rates and potential revenue impacts from regulatory changes. The Q&A session highlights uncertainties in credit trends and regulatory environments. The lack of clear guidance on the late fee rule and the absence of significant positive catalysts like new partnerships or optimistic guidance lead to a neutral sentiment. Without a market cap, the stock's reaction remains uncertain, but likely within a neutral range.