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

Shares of Bank of Montreal (TSE:BMO) (NYSE:BMO) gained in today’s trading as investors await the Canadian bank’s Q2 earnings results on May 29 before the market opens. Analysts are expecting earnings per share to come in at C$2.77 on revenue of C$8.054 billion. This represents a decline from the C$2.93 per share seen in the year-ago period, according to TipRanks’ data.

BNS has not enjoyed a good track record lately when it comes to beating estimates. Indeed, the bank only beat EPS forecasts two times during the past eight quarters, as demonstrated in the image below.

Options Traders Anticipate a Small Move

Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 3.93% move in either direction.

Is BMO a Good Buy Right Now?

Turning to Wall Street, analysts have a Strong Buy consensus rating on BMO stock based on eight Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 19% rally in its share price over the past year, the average BMO price target of C$135.61 per share implies 3.66% upside potential.

Is BMO the Right Stock to Buy for Passive Income? 

Before you hurry to invest in BMO, think about the following: 

TipRanks’ team has built a Smart Dividend Stock Portfolio for investors, and BMO is not included. Our portfolio highlights companies that have been hand-picked for their potential to deliver significant passive income for years to come. 
Get a FREE sample of dividend stock ideas! ➜

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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