Capital One To Deliver Mixed Results In Q1?

Capital One To Deliver Mixed Results In Q1?

NEW YORK, UNITED STATES - 2020/10/19: A woman wearing a face mask walks past the Capital One Bank ... [+] branch in Midtown. (Photo by John Lamparski/SOPA Images/LightRocket via Getty Images)

Capital One (NYSE: COF) is scheduled to report its Q1 2021 results on Tuesday, April 27 (after the market closes). We expect Capital One to beat consensus estimates for revenues, although earnings are likely to come in below expectations. The credit card giant surpassed the consensus estimates for revenues and earnings in each of the last two quarters. However, its net interest income - which contributes roughly 80% of its top line - suffered in 2020 due to the low interest-rate environment and the drop in consumer spending levels. The impact was also felt on card purchase volumes, which deteriorated for the year - hurting interchange fees. That said, consumer spending levels have seen some improvement over recent months. Further, COF has decreased its provisions for loan losses over the last two quarters on a sequential basis, boosting its profitability figures. We expect the same trend to govern the first-quarter FY2021 results as well.