Capital One Set to Report Q4 Earnings with Promising Growth Potential

Capital One Financial Corporation (COF), based in McLean, Virginia, acts as the financial services holding company for Capital One, National Association. With a market cap of $68.8 billion, the company offers a range of financial products including personal credit cards, loans, and online banking services. Investors are eagerly anticipating the announcement of its fiscal fourth-quarter earnings for 2024, scheduled for after the market closes on Tuesday, Jan. 21.

Expectations for Q4 Earnings Surge

Analysts predict that COF will report earnings of $2.67 per share on a diluted basis, marking a 19.2% increase from $2.24 per share in the same quarter last year. However, the company has a mixed track record, as it missed consensus estimates in three of the last four quarters, although it did beat expectations once.

Full-Year Earnings Forecast

For the entire year, estimates suggest COF’s earnings per share (EPS) will reach $13.59, which is an 8.6% rise from $12.52 in fiscal 2023. Looking ahead to fiscal 2025, the EPS is projected to grow even further, reaching $15.35, or a 13% increase year over year.

Stock Performance Highlights

In the past year, COF stock has outperformed the S&P 500 index, posting a 38% increase compared to the index’s 26.3% rise. It has also surpassed the Financial Select Sector SPDR Fund’s (XLF) gains of 29.8%. Several factors contributed to this performance, including a declining interest rate environment and the upcoming acquisition of Discover Financial Services (DFS), which could significantly enhance its credit card operations.

Recent Q3 Results Boost Investor Confidence

On October 24, COF released its third-quarter results, which led to a more than 5% increase in share price during the next trading session. The adjusted EPS of $4.51 surpassed Wall Street’s expectations of $3.70, and revenue amounted to $10 billion, exceeding forecasts of $9.8 billion.

Analysts’ Ratings and Future Outlook

The consensus among analysts regarding COF stock is moderately bullish. Out of 19 analysts monitoring the stock, six recommend a “Strong Buy,” one suggests a “Moderate Buy,” and 12 advocate a “Hold” position. The average analyst price target currently stands at $187.47, indicating a potential upside of 3.9% from its present levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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