Royal Bank (RY) Expected to Beat Earnings Estimates: Can the Stock Move Higher?

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Royal Bank despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Royal Bank is expected to report quarterly earnings of $2.36 per share, reflecting a year-over-year decrease of 0.8%, while revenues are projected to be $11.59 billion, an increase of 8.5% from the previous year [3]. - The consensus EPS estimate has been revised 0.85% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP for Royal Bank is +1.06%, suggesting analysts are optimistic about the company's earnings prospects [12]. - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. Historical Performance - In the last reported quarter, Royal Bank's expected earnings were $2.25 per share, but it reported $2.20, resulting in a surprise of -2.22% [13]. - Over the past four quarters, Royal Bank has surpassed consensus EPS estimates three times [14]. Industry Comparison - Bank of Nova Scotia is expected to report earnings of $1.28 per share, indicating a year-over-year increase of 7.6%, with revenues projected at $6.86 billion, up 12.4% from the previous year [18]. - The consensus EPS estimate for Bank of Nova Scotia has been revised 0.8% higher, but its Earnings ESP is 0%, making it challenging to predict an earnings beat [19].