Capital One (COF) Q2 Earnings and Revenues Lag Estimates

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Capital One (COF) got here out with quarterly earnings of $4.96 per share, lacking the Zacks Consensus Estimate of $5.13 per share. This compares to earnings of $7.71 per share a yr in the past. These figures are adjusted for non-recurring gadgets.

This quarterly report represents an earnings shock of -3.31%. 1 / 4 in the past, it was anticipated that this bank card issuer and financial institution would submit earnings of $5.39 per share when it really produced earnings of $5.62, delivering a shock of 4.27%.

Over the past 4 quarters, the corporate has surpassed consensus EPS estimates thrice.

Capital One, which belongs to the Zacks Monetary – Shopper Loans trade, posted revenues of $8.23 billion for the quarter ended June 2022, lacking the Zacks Consensus Estimate by 0.59%. This compares to year-ago revenues of $7.37 billion. The corporate has topped consensus income estimates thrice over the past 4 quarters.

The sustainability of the inventory’s quick worth motion based mostly on the recently-released numbers and future earnings expectations will principally depend upon administration’s commentary on the earnings name.

Capital One shares have misplaced about 20.9% because the starting of the yr versus the S&P 500’s decline of -16.9%.

What’s Subsequent for Capital One?

Whereas Capital One has underperformed the market thus far this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?

There aren’t any simple solutions to this key query, however one dependable measure that may assist traders deal with that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified recently.

Empirical analysis exhibits a robust correlation between near-term inventory actions and traits in earnings estimate revisions. Buyers can observe such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a formidable observe report of harnessing the ability of earnings estimate revisions.

Forward of this earnings launch, the estimate revisions pattern for Capital One: blended. Whereas the magnitude and route of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out consistent with the market within the close to future. You’ll be able to see the entire listing of at present’s Zacks #1 Rank (Robust Purchase) shares right here.

It will likely be fascinating to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $5.11 on $8.5 billion in revenues for the approaching quarter and $20.20 on $33.73 billion in revenues for the present fiscal yr.

Buyers must be conscious of the truth that the outlook for the trade can have a cloth affect on the efficiency of the inventory as effectively. By way of the Zacks Trade Rank, Monetary – Shopper Loans is at the moment within the backside 25% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.

One different inventory from the identical trade, OneMain Holdings (OMF), is but to report outcomes for the quarter ended June 2022. The outcomes are anticipated to be launched on July 27.

This shopper finance firm is predicted to submit quarterly earnings of $1.90 per share in its upcoming report, which represents a year-over-year change of -28.6%. The consensus EPS estimate for the quarter has been revised 3.3% decrease over the past 30 days to the present stage.

OneMain Holdings’ revenues are anticipated to be $886.42 million, up 25.2% from the year-ago quarter.

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Many of the shares on this report are flying beneath Wall Road radar, which supplies an incredible alternative to get in on the bottom flooring.

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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.


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