Valued at a market cap of $57.4 billion, Capital One Financial Corporation (COF) is a financial services holding company that provides various financial products and services to consumers, small businesses and commercial clients. The McLean, Virginia-based company has a strong presence in consumer banking, auto loans, and commercial lending. It is expected to announce its fiscal Q1 earnings for 2025 after the market closes on Tuesday, Apr. 22.
Prior to this event, analysts expect this financial service provider to report a profit of $3.76 per share, up 17.1% from $3.21 per share in the year-ago quarter. The company has exceeded Wall Street’s earnings estimates in two of the last four quarters, while missing on other two occasions. In Q4 2024, COF’s EPS of $3.09 surpassed the forecasted figure by a notable margin of 16.2%.
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For the full year, analysts expect COF to report EPS of $15.50, up 11% from $13.96 in fiscal 2024. Its EPS is expected to further grow 16.8% year over year to $18.10 in fiscal 2026.
Shares of COF have surged 7.8% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 2.7% loss, and the Financial Select Sector SPDR Fund’s (XLF) 6.1% gain over the same time frame.
On Apr. 3, the stock market suffered its worst decline in several years, triggered by President Trump’s announcement of global tariffs. Among the hardest-hit stocks was COF, which plunged 10% in a single session. The steep drop was largely due to the company’s heavy reliance on credit card lending, a segment that is particularly sensitive to economic downturns. As fears of a potential slowdown intensified, investors grew concerned about rising default risks, causing a sharp decline in Capital One’s share price.
On Jan. 21, COF released its Q4 earnings results. Shares of the company soared 4% the following day as it delivered a strong performance. Its net revenue advanced 7.2% year-over-year to $10.2 billion, fueled by a robust 7.7% increase in its net interest income. Adding to the positives, its earnings grew by a notable 59.9% from the year-ago quarter to $2.67 per share, while its average total deposits improved 3.8% annually.
Wall Street analysts are moderately optimistic about COF’s stock, with a "Moderate Buy" rating overall. Among 21 analysts covering the stock, 14 recommend "Strong Buy," one suggests a “Moderate Buy,” and six advise “Hold.” The mean price target for COF is $214.10, which indicates a notable 38.4% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
