Toronto-Dominion Bank (TD) Expected to Beat Earnings Estimates: Can the Stock Move Higher?

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Toronto-Dominion Bank (TD) despite higher revenues, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus EPS estimate for the upcoming quarter is $1.21, reflecting a year-over-year decrease of 19.3% [3]. - Expected revenues are projected at $10.74 billion, which is an increase of 5.5% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.83% over the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +1.10% suggests analysts have recently become more optimistic about the company's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - Toronto-Dominion currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Toronto-Dominion exceeded the expected EPS of $1.38 by posting $1.39, resulting in a surprise of +0.72% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - While the potential for an earnings beat exists, other factors may influence stock performance, making it essential to consider the broader context beyond just earnings results [14][16].