Bank of Montreal (BMO) Meets Q2 Earnings Estimates

Core Insights - Bank of Montreal (BMO) reported quarterly earnings of $1.84 per share, matching the Zacks Consensus Estimate, but down from $1.91 per share a year ago [1] - The bank's revenues for the quarter were $6.11 billion, missing the Zacks Consensus Estimate by 4.47%, compared to $5.88 billion in the same quarter last year [2] - BMO's stock has increased approximately 8% year-to-date, outperforming the S&P 500's gain of 0.7% [3] Earnings Performance - BMO's earnings surprise in the previous quarter was significant, with actual earnings of $2.14 per share compared to an expected $1.70, resulting in a surprise of 25.88% [1] - Over the last four quarters, BMO has exceeded consensus EPS estimates only once [1] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.09 on revenues of $6.57 billion, and for the current fiscal year, it is $8.04 on revenues of $25.66 billion [7] - The estimate revisions trend for BMO is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Banks - Foreign industry, to which BMO belongs, is currently ranked in the top 11% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and earnings estimate revisions, which can be tracked by investors [5]