Royal Bank (RY) Q1 Earnings and Revenues Surpass Estimates

Core Viewpoint - Royal Bank reported quarterly earnings of $2.55 per share, exceeding the Zacks Consensus Estimate of $2.28 per share, and showing an increase from $2.11 per share a year ago, indicating a positive earnings surprise of 11.84% [1][2] Financial Performance - The company posted revenues of $11.78 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 8.70%, compared to $9.98 billion in the same quarter last year [2] - Over the last four quarters, Royal Bank has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance and Outlook - Royal Bank shares have declined approximately 0.9% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Estimate Revisions - The trend for estimate revisions ahead of the earnings release was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - Current consensus EPS estimate for the upcoming quarter is $2.22 on revenues of $10.68 billion, and for the current fiscal year, it is $9.15 on revenues of $43.99 billion [7] Industry Context - The Zacks Industry Rank for Banks - Foreign is currently in the bottom 48% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact stock performance [8]