Bank of Montreal (TSE:BMO) Pre-Earnings: Here’s What to Expect

28 may

Bank of Montreal (BMO) shares gained in trading as investors await the Canadian bank's Q2 earnings results on May 29. Analysts are expecting earnings per share to come in at C$2.77 on revenue of C$8.054 billion, a decline from the C$2.93 per share seen in the year-ago period. The bank has not had a good track record lately when it comes to beating estimates, with only beating EPS forecasts two times during the past eight quarters.

Bank of Montreal (BMO) has a Strong Buy consensus rating on BMO stock based on eight Buys, one Hold, and zero Sells assigned in the past three months. The average BMO price target of C$135.61 per share implies 3.66% upside potential. Other equities research analysts have issued research reports about the company, with Jefferies Financial Group starting coverage on February 22nd, StockNews.com raising Bank of Montreal (BMO) from a "sell" rating to a "hold" rating, and Barclays taking coverage on March 20th.

Bank of Montreal (BMO) has a market cap of $69.63 billion, a P/E ratio of 18.22, a price-to-earnings-growth ratio of 2.37, and a beta of 1.13. The bank reported $1.90 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.24 by ($0.34). Hedge funds and other institutional investors own 45.82% of the company's stock.

Technical Outlook
Bank of Montreal (BMO) stock closed Friday's trading session up 0.97% trading with a Relative Strength Index (RSI) of 59.22 which is poised for further growth. The daily price chart shows a strong retracement to the support zone of $93.33.