Toronto-Dominion Bank (TD) profits and revenues exceed estimates
TThe oronto-Dominion Bank (TD) made quarterly profit of $ 1.62 per share, beating Zacks’ consensus estimate of $ 1.39 per share. This compares to a profit of $ 0.63 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents a profit surprise of 16.55%. A quarter ago, this retail and wholesale bank was expected to post a profit of $ 1.17 per share when it actually produced a profit of $ 1.42, a surprise of 21, 37%.
In the past four quarters, the company has exceeded consensus EPS estimates four times.
Toronto-Dominion, which is part of the Zacks Banks – Foreign business, posted revenue of $ 8.13 billion for the quarter ended April 2021, beating Zacks’ consensus estimate by 2.44%. This compares to revenue of $ 7.85 billion a year ago. The company has beaten consensus revenue estimates three times in the past four quarters.
The sustainability of the immediate move in stock prices based on recently released numbers and future earnings forecasts will depend primarily on management comments on the profit call.
Toronto-Dominion stocks are up about 30% year-to-date compared to the S&P 500’s 11.7% gain.
What’s next for Toronto-Dominion?
While Toronto-Dominion has outperformed the market so far this year, the question that comes to investors’ minds is, what’s next for the stock?
There are no easy answers to this key question, but the company’s earnings outlook is a reliable metric that can help investors address it. This not only includes the current consensus earnings forecast for the coming quarter (s), but also how those expectations have changed in recent times.
Empirical research shows a strong correlation between short-term stock market movements and trends in earnings estimate revisions. Investors can follow these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has impressive experience in harnessing the power of earnings estimate revisions.
Prior to this release of the results, the trend in revised estimates for Toronto-Dominion was favorable. While the magnitude and direction of estimate revisions may change as a result of the company’s newly released earnings report, the current status translates into a Zacks # 2 (buy) rank for the stock. . Thus, stocks are expected to outperform the market in the near future. You can see The full list of current Zacks # 1 Rank (Strong Buy) stocks here.
It will be interesting to see how the estimates for the coming quarters and the current year evolve in the days to come. The currently consensus EPS estimate is $ 1.44 on $ 8 billion in revenue for the coming quarter and $ 5.82 on $ 31.75 billion in revenue for the current year.
Investors should be aware that the outlook for the industry can also have a significant impact on the performance of the stock. In terms of Zacks industry rankings, Banks – Foreign is currently in the top 36% of the 250+ Zacks industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.