Bank of Montreal Earnings: Everything You Must Know Now

Bank of Montreal (NYSE:BMO) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Bank of Montreal Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 1.39% to $1.46 in the quarter versus EPS of $1.44 in the year-earlier quarter.

Revenue: Decreased 24.4% to $3.94 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bank of Montreal reported adjusted EPS income of $1.46 per share. By that measure, the company missed the mean analyst estimate of $1.5. It missed the average revenue estimate of $3.97 billion.

Quoting Management: “BMO’s second quarter reflects solid operating performance,” said Bill Downe, President and Chief Executive Officer, BMO Financial Group. “Our wealth, capital markets, and U.S. personal and commercial banking businesses each had a good quarter. We saw continuing volume growth in Canadian personal and commercial lending as a result of new business opened. P&C Canada is taking share and is confident in its ability to convert new customers into multi-product relationships.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS decreased 3.95% from $1.52 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.54 to a profit $1.55. For the current year, the average estimate has moved up from a profit of $6.06 to a profit of $6.08 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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