Bank of Montreal (BMO) Surpasses Q4 Earnings and Revenue Estimates

Core Insights - Bank of Montreal (BMO) reported quarterly earnings of $2.36 per share, exceeding the Zacks Consensus Estimate of $2.16 per share, and showing a significant increase from $1.39 per share a year ago, resulting in an earnings surprise of +9.26% [1] - The bank's revenues for the quarter ended October 2025 were $6.73 billion, surpassing the Zacks Consensus Estimate by 5.24% and up from $6.56 billion year-over-year [2] - BMO's stock has increased approximately 30.6% since the beginning of the year, outperforming the S&P 500's gain of 16.5% [3] Earnings Outlook - The future performance of BMO's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $2.36 on revenues of $6.63 billion, and for the current fiscal year, it is $9.50 on revenues of $26.53 billion [7] Estimate Revisions - Prior to the earnings release, the estimate revisions trend for BMO was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which investors can track [5] Industry Context - The Zacks Industry Rank places the Banks - Foreign sector in the top 30% of over 250 Zacks industries, suggesting that companies in this category are likely to outperform those in the bottom 50% [8]