TD Q4 Earnings Preview: What to Expect

Toronto-Dominion Bank (TD), Canada’s largest bank by assets, will report Q4 earnings on December 2 before the opening bell.

Stock Performance

Year-to-date, the bank stock has jumped by nearly 30% and is currently trading close to C$92.61.

Solid earnings could propel shares of TD higher, so let’s have a look at what analysts are expecting. (See Analysts’ Top Stocks on TipRanks)

Analyst Estimates

Analysts on average expect TD to post adjusted earnings of C$1.94 per share in Q4 2021, representing a growth of 21.3% from the prior-year quarter (C$1.60 per share).

The estimated revenue is C$10.41 billion, indicating a decrease of 0.1% from the fourth quarter of 2020 (C$10.45 billion).

TD beat EPS estimates in the past five quarters and is expected to beat estimates again in the coming quarter.

Points to Watch

Improving loan growth is expected as the economic recovery accelerates. Canada’s banking regulator said in September that at the time, loan growth increased 1.8% in the quarter.

Barclays analyst John Aiken said in a note, “With the improving macro outlook, credit could come in better than expected, spurring upside earnings surprises.”

Wall Street’s Take

On November 30, BMO Capital analyst Sohrab Movahedi reiterated a Hold rating on TD and a price target of C$94. This implies 1.5% upside potential.

Overall, TD scores a Moderate Buy rating among Wall Street analysts based on five Buys and four Holds. The average Toronto-Dominion Bank price target of C$98.14 implies 5.9% upside potential to current levels.

TipRanks’ Smart Score

TD scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform the overall market.