Bank Of Montreal (NYSE:BMO) Posts Earnings Results, Beats Estimates By $0.13 EPS

Bank Of Montreal (NYSE:BMO) (TSE:BMO) released its quarterly earnings data on Tuesday. The bank reported $2.84 EPS for the quarter, beating the consensus estimate of $2.71 by $0.13, Zacks reports. The business had revenue of $7.10 billion for the quarter, compared to the consensus estimate of $6.94 billion. Bank Of Montreal had a net margin of 11.72% and a return on equity of 13.60%. The company’s revenue was up 10.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $3.23 earnings per share.

Here are the key takeaways from Bank Of Montreal’s conference call:

• Adjusted EPS rose 22% year over year to CAD 3.96, while pre-provision, pre-tax earnings increased 13% to CAD 4.5 billion. All four operating segments delivered record pre-provision, pre-tax earnings, supported by 11% revenue growth and positive operating leverage.
• Adjusted ROE improved 200 basis points to 14%, and management reiterated confidence in reaching its 15% ROE target by the end of fiscal 2027. U.S. Banking ROE rose to 9.8%, with commercial loans up 4% sequentially following the completion of balance-sheet optimization.
• Credit performance improved, with total provisions declining to CAD 722 million and impaired provisions reaching their lowest level in 10 quarters. BMO also announced a normal-course issuer bid for up to 25 million shares, while planned divestitures are expected to add approximately 50 basis points to CET1 capital for redeployment toward higher-return growth opportunities.
• Management identified newly announced tariffs and broader Canada-U.S. trade uncertainty as downside risks to Canadian growth, employment, affordability, and business investment. Although direct exposure to trade disruption is described as manageable and impaired PCLs are expected to be roughly in line with Q3, second-order economic effects remain a concern.
• Wealth Management and Capital Markets continued to post strong results, with revenue up 24% and 20%, respectively. Management believes Capital Markets’ earnings capacity has increased due to investments in people, technology, product capabilities, and franchise diversification, though results also benefited from constructive market conditions.

Bank Of Montreal Price Performance

Shares of BMO stock traded down $1.47 during trading on Monday, hitting $170.39. The company had a trading volume of 986,722 shares, compared to its average volume of 809,263. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.10. The stock’s 50-day moving average is $177.88 and its two-hundred day moving average is $159.69. The stock has a market capitalization of $118.79 billion, a price-to-earnings ratio of 19.23, a price-to-earnings-growth ratio of 1.02 and a beta of 0.94. Bank Of Montreal has a 52 week low of $118.66 and a 52 week high of $187.22.

Bank Of Montreal Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 26th. Investors of record on Friday, October 30th will be given a $1.71 dividend. This represents a $6.84 annualized dividend and a dividend yield of 4.0%. The ex-dividend date is Friday, October 30th. Bank Of Montreal’s dividend payout ratio is 54.29%.

Analysts Set New Price Targets

BMO has been the topic of several analyst reports. Royal Bank Of Canada reiterated a “sector perform” rating on shares of Bank Of Montreal in a research report on Thursday. Raymond James Financial reiterated an “outperform” rating on shares of Bank Of Montreal in a research report on Tuesday, May 12th. TD Securities reiterated a “buy” rating on shares of Bank Of Montreal in a research report on Wednesday, August 12th. Scotiabank reiterated an “outperform” rating on shares of Bank Of Montreal in a research report on Wednesday, August 26th. Finally, Keefe, Bruyette & Woods initiated coverage on Bank Of Montreal in a research report on Friday, August 21st. They set an “outperform” rating on the stock. Five equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Bank Of Montreal currently has an average rating of “Hold” and an average price target of $163.00.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of BMO. Morgan Stanley grew its position in Bank Of Montreal by 74.4% during the fourth quarter. Morgan Stanley now owns 3,817,406 shares of the bank’s stock valued at $495,461,000 after acquiring an additional 1,628,318 shares during the last quarter. UBS Group AG grew its position in Bank Of Montreal by 155.3% during the third quarter. UBS Group AG now owns 2,127,377 shares of the bank’s stock valued at $277,091,000 after acquiring an additional 1,294,169 shares during the last quarter. FIL Ltd grew its position in Bank Of Montreal by 15.2% during the fourth quarter. FIL Ltd now owns 9,445,162 shares of the bank’s stock valued at $1,226,622,000 after acquiring an additional 1,245,500 shares during the last quarter. BCV Asset Management Inc. bought a new position in Bank Of Montreal during the fourth quarter valued at approximately $84,978,000. Finally, Invesco Ltd. grew its position in Bank Of Montreal by 51.3% during the third quarter. Invesco Ltd. now owns 1,606,369 shares of the bank’s stock valued at $209,230,000 after acquiring an additional 544,999 shares during the last quarter. 45.82% of the stock is currently owned by institutional investors.

About Bank Of Montreal

Bank of Montreal (NYSE:BMO), commonly known as BMO Financial Group, is one of Canada’s largest and longest-established banks. Founded in Montreal and headquartered in Montreal, Quebec, the bank provides a broad range of financial services to retail, commercial, corporate and institutional clients. BMO is publicly listed in both Canada and the United States and operates under a consolidated financial services model that integrates banking, capital markets, wealth management and asset management activities.

BMO’s core businesses include personal and commercial banking—offering checking and savings accounts, lending, mortgages, and small-business services—alongside wealth management and private banking through its asset and investment management divisions.