Royal Bank of Canada (NYSE:RY extension) will publish its upcoming earnings results on Wednesday, March 1st. Here’s Benzinga’s guide to revenue reporting with all the important information.
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Net income, earnings and earnings per share
Earnings and earnings per share are good indicators of a company’s profitability. Gross income, otherwise known as net income, is the difference between total revenue and total expenses. Earnings per share equals net income divided by the number of shares outstanding.
Profit and turnover
Analysts covering Royal Bank of Canada had estimated quarterly earnings of $2.15 per share on revenue of $9.81 billion. Royal Bank of Canada posted earnings of $2.28 per share when it reported results for the same period a year ago. Total sales during that period were $10.36 billion.
What are analyst estimates and earnings surprises, and why do they matter?
Wall Street analysts who cover this company issue earnings per share and earnings estimates. Averages of all analysts’ earnings and revenue estimates are called “consensus estimates”; Such consensus estimates can have a significant impact on the company’s earnings performance.
If the company reports revenue or earnings above or below consensus estimates, it is referred to as “earnings surprises,” which affect stock performance based on the difference between estimated and actual values.
Analyst consensus estimate would point to a 5.70% decline in the company’s earnings. The turnover would have decreased by 5.35% compared to the same quarter of the previous year. Royal Bank of Canada’s earnings compared to previous analyst estimates were as follows:
| quarter | Fourth quarter 2022 | Third quarter 2022 | Second quarter 2022 | First quarter 2022 |
|---|---|---|---|---|
| Earnings per share estimate | 201 | 268 | 209 | 214 |
| Effective earnings per share | 206 | 195 | 234 | 228 |
| Turnover estimation | 9.25 billion | 9.43 billion | 9.41 billion | 9.50 billion |
| Actual turnover | 9.45 billion | 9.43 billion | 8.86 billion | 10.36 billion |
Title performance
As of February 27, Royal Bank of Canada shares were trading at $101.68. Over the past 52 weeks, shares have declined 6.64%. Since these yields are typically negative, long-term investors will be a little worried as the earnings report approaches.
Not surprisingly, the comments made during the conference call moved the stock. The Royal Bank of Canada call is scheduled for 08:00:00 AM ET and can be accessed here: https://www.rbc.com/investor-relations/events-and-presentations.html
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