Bank of Montreal (BMO) Misses Q2 Earnings and Revenue Estimates

Group 1: Earnings Performance - Bank of Montreal (BMO) reported quarterly earnings of $1.91 per share, missing the Zacks Consensus Estimate of $2.01 per share, and down from $2.16 per share a year ago, representing an earnings surprise of -4.98% [1] - The bank's revenues for the quarter ended April 2024 were $5.88 billion, which also missed the Zacks Consensus Estimate by 1.33%, compared to $6.22 billion in the same quarter last year [1] - Over the last four quarters, the company has consistently failed to surpass consensus EPS and revenue estimates [1] Group 2: Stock Performance and Outlook - Bank of Montreal shares have declined approximately 2.9% since the beginning of the year, contrasting with the S&P 500's gain of 11.2% [2] - The current consensus EPS estimate for the upcoming quarter is $2.32 on revenues of $6.13 billion, and for the current fiscal year, it is $8.31 on revenues of $24.05 billion [4] - The estimate revisions trend for Bank of Montreal is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [4] Group 3: Industry Context - The Zacks Industry Rank for Banks - Foreign places it in the top 22% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [5] - Another bank in the same industry, Canadian Imperial Bank (CM), is expected to report quarterly earnings of $1.22 per share, reflecting a year-over-year change of -2.4%, with revenues anticipated to be $4.48 billion, up 6.5% from the previous year [6]