- Capital One’s adjusted EPS for the first quarter outperformed expectations at $4.06, compared to last year’s $3.21 and an estimated $3.63.
- Net revenue rose by 6.4% year-over-year to $10.00 billion, slightly below the estimated $10.05 billion.
- Net interest income increased by 7% year-over-year, reaching $8.01 billion, but fell short of the $8.05 billion estimate.
- Non-interest income met expectations at $1.99 billion, marking a 3.8% year-over-year growth.
- The net interest margin improved to 6.93% from the previous year’s 6.69%, though it was below the predicted 7.05%.
- Provision for credit losses decreased by 12% year-over-year to $2.37 billion, beating the estimate of $2.79 billion.
- Non-interest expenses rose significantly by 15% year-over-year to $5.90 billion, exceeding the projected $5.37 billion.
- Total deposits increased by 1.3% from the prior quarter to $367.5 billion, surpassing the estimate of $362.3 billion.
- Loans held for investment slightly grew by 2.7% year-over-year to $323.6 billion, which was just below the expected $324.86 billion.
- Analyst recommendations for Capital One consist of 15 buys, 8 holds, and 1 sell.
A look at Capital One Financial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Capital One Financial has received a positive outlook overall. With high scores in Value and Momentum, the company appears to be positioned well for the long term. The Value score of 4 indicates that Capital One Financial is perceived favorably in terms of its valuation metrics, while the Momentum score of 4 suggests strong positive price trends. Although the Growth, Resilience, and Dividend scores are slightly lower, at 3 each, the company still appears to be in a solid position for future growth and stability. This indicates that Capital One Financial may offer a good investment opportunity for those looking for a blend of value and growth potential.
Capital One Financial Corporation, a diversified bank with a presence in various states, offers a wide range of financial products and services to consumers, small businesses, and commercial clients. With a strong emphasis on value and positive momentum, the company is strategically positioned to capitalize on market opportunities and navigate potential challenges. The balanced Smartkarma Smart Scores reflect a well-rounded outlook for Capital One Financial, showcasing its potential for long-term success in the dynamic financial industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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