The earnings call reflects a strong financial performance with significant growth in the Domestic Card and Auto businesses, as well as improvements in credit and liquidity. However, challenges remain with increased noninterest expenses, consumer banking revenue decline, and uncertainties surrounding the Discover acquisition.

Company Guidance

During the Capital One Q3 2024 earnings call, the executives provided detailed guidance on various financial metrics. The company reported a net income of $1.8 billion, or $4.41 per diluted share, with adjusted earnings per share at $4.51. Pre-provision earnings increased by 3% sequentially to $4.7 billion, and revenue rose by 5%, driven by higher net interest income. The provision for credit losses decreased by $1.4 billion to $2.5 billion. The net interest margin improved by 41 basis points to 7.11%, due to factors including higher card and auto yields and the impact of the Walmart revenue sharing termination. The common equity Tier 1 capital ratio stood at 13.6%, up 40 basis points from the previous quarter. Capital One's operating efficiency ratio was projected to be in the low 42% range for 2024, slightly down from 2023. The executives also highlighted the ongoing regulatory process for the Discover acquisition, with expectations to conclude by early 2025.

Strong Financial Performance

Capital One earned $1.8 billion or $4.41 per diluted common share in Q3 2024, with adjusted earnings per share at $4.51. Pre-provision earnings increased 3% from the previous quarter to $4.7 billion, and revenue increased by 5%.

Credit and Liquidity Improvements

The provision for credit losses decreased by $1.4 billion relative to the prior quarter. Allowance releases in the card and consumer banking segments led to a decrease in the coverage ratio. Liquidity reserves increased to approximately $132 billion, with a preliminary average liquidity coverage ratio at 163%.

Growth in Domestic Card Business

Domestic Card business showed year-over-year purchase volume growth of 5%, ending loan balances increased by 6%, and revenue grew by 10%.

Auto Business Growth

Auto originations increased by 23% year-over-year in Q3 2024, and credit performance remains stable.

Capital Position Strength

Common equity Tier 1 capital ratio increased to 13.6%, 40 basis points higher than the prior quarter.

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Capital One Financial (COF) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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COF Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jan 21, 2025	2024 (Q4)	2.84 / -	2.24	―	―	―
Oct 24, 2024	2024 (Q3)	3.77 / 4.51	4.45	1.35% (+0.06)
Jul 23, 2024	2024 (Q2)	3.41 / 3.14	3.52	-10.80% (-0.38)
Apr 25, 2024	2024 (Q1)	3.31 / 3.21	2.31	38.96% (+0.90)
Jan 25, 2024	2023 (Q4)	2.65 / 2.24	2.82	-20.57% (-0.58)
Oct 26, 2023	2023 (Q3)	3.25 / 4.45	4.2	5.95% (+0.25)
Jul 20, 2023	2023 (Q2)	3.26 / 3.52	4.96	-29.03% (-1.44)
Apr 27, 2023	2023 (Q1)	3.75 / 2.31	5.62	-58.90% (-3.31)
Jan 24, 2023	2022 (Q4)	3.88 / 2.82	5.41	-47.87% (-2.59)
Oct 27, 2022	2022 (Q3)	5.11 / 4.20	6.86	-38.78% (-2.66)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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COF Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 24, 2024	$152.76	$160.75	+5.23%
Jul 23, 2024	$144.38	$145.29	+0.63%
Apr 25, 2024	$144.24	$144.48	+0.17%
Jan 25, 2024	$130.40	$136.47	+4.65%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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