COWN - Toronto-Dominion Bank FQ1 expected to benefit from segment earnings

The Toronto-Dominion Bank ( NYSE: TD ) FQ1 results are expected to benefit from segment earnings, which were strong across most Canadian banks.

TD Bank is scheduled to announce FQ1 earnings results on Thursday, March 2nd, before market open.

The consensus EPS estimate is CAD2.20 and the consensus revenue estimate is CAD11.99B.

Over the last 2 years, TD has beaten EPS estimates 100% of the time and revenue estimates 100% of the time.

Over the last 3 months, EPS estimates have seen 5 upward revisions and 0 downward. Revenue estimates have seen 1 upward revision and 0 downward.

Looking at the peer performance, Canadian banks have seen a solid quarter. Canadian Imperial Bank of Commerce posted a stronger-than-expected FQ1 earnings, helped by higher interest rates and a lower provision for credit losses.

Royal Bank of Canada also beat FQ1 analyst estimates driven by strong results in its Personal & Commercial Banking and Wealth Management units and a rebound in Capital Markets. Bank of Montreal also turned in better-than-expected adjusted EPS for the quarter ended Jan. 31.

Bank of Nova Scotia was an exception as FQ1 earnings missed consensus estimates. Net interest income slipped from the prior quarter while the bank set aside more for potential credit losses.

Here is a look at TD's segment results last year:

Toronto-Dominion is going into the next earnings cycle with elevated concerns about its rate sensitivity and exposure to credit risk, but underlying earnings power looks stronger than for most peers, according to Seeking Alpha author Stephen Simpson.

Among the major five Canadian banks, Toronto-Dominion Bank could be the best pick right now, SA contributor Daniel Schönberger said .

The bank has closed the acquisition of Cowen ( COWN ), which will which will advance its long-term growth strategy in the U.S., and expects to close the First Horizon ( FHN ) acquisition later in 2023.

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