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Capital One Financial Corporation (COF), headquartered in McLean, Virginia, operates as the financial services holding company for the Capital One, National Association, which provides various financial products and services. Valued at $68.8 billion by market cap, the company accepts deposits and offers personal credit cards, investment products, loans, and online banking services. The leading financial services company is expected to announce its fiscal fourth-quarter earnings for 2024 after the market closes on Tuesday, Jan. 21.
Ahead of the event, analysts expect COF to report a profit of $2.67 per share on a diluted basis, up 19.2% from $2.24 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while beating the forecast on another occasion.
For the full year, analysts expect COF to report EPS of $13.59, up 8.6% from $12.52 in fiscal 2023. Its EPS is expected to rise 13% year over year to $15.35 in fiscal 2025.
COF stock has outperformed the S&P 500’s ($SPX) 26.3% gains over the past 52 weeks, with shares up 38% during this period. Similarly, it outperformed the Financial Select Sector SPDR Fund’s (XLF) 29.8% gains over the same time frame.
COF has outperformed due to the falling-interest rate environment and pending acquisition of Discover Financial Services (DFS), expected to drive a massive credit card business combined. Additionally, potential cost savings and policy changes could further benefit the bank. Moreover, its performance is driven by the expansion of its domestic card and auto businesses, as well as its consistently stable consumer credit performance.
On Oct. 24, COF reported its Q3 results and its shares closed up more than 5% in the following trading session. Its adjusted EPS of $4.51 exceeded Wall Street expectations of $3.70. The company’s revenue was $10 billion, beating Wall Street forecasts of $9.8 billion.
Analysts’ consensus opinion on COF stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 19 analysts covering the stock, six advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and 12 give a “Hold.” COF’s average analyst price target is $187.47, indicating a potential upside of 3.9% from the current levels.
