On Tuesday, January 26, Capital One Financial COF will release its latest earnings report. Here is Benzinga's outlook for the company.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Analysts expect Capital One Financial earnings of $2.86 per share. Revenue will likely be around $6.97 billion, according to the consensus estimate. Capital One Financial reported a profit of $2.49 per share when it published results during the same quarter last year. Sales in that period totaled $7.43 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
The Wall Street estimate would represent a 14.86% increase in the company's earnings. Sales would be down 6.15% on a year-over-year basis. Capital One Financial's reported EPS has stacked up against analyst estimates in the past like this:
| Quarter | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2020 |
|---|---|---|---|---|
| EPS Estimate | 2.01 | -1.46 | 0.59 | 2.28 |
| EPS Actual | 5.06 | -2.21 | -3.01 | 2.25 |
| Revenue Estimate | 6.70 B | 6.83 B | 7.26 B | 7.34 B |
| Revenue Actual | 7.38 B | 6.56 B | 7.25 B | 7.43 B |
Stock Performance
Shares of Capital One Financial were trading at $105.42 as of January 22. Over the last 52-week period, shares are up 1.52%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. Capital One Financial is scheduled to hold the call at 17:00:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
