2024-05-21 15:00:29 ET
Summary
- The Bank of Nova Scotia's fiscal second-quarter earnings are in focus.
- We think sustained income from asset-level income is likely. However, an exacerbated provisions line item is possible.
- Our systematic outlook anticipated pressure from Latin American business activities and unchanged wealth management numbers.
- In our view, Scotiabank's dividend is best-in-class. However, our residual income model indicates that its stock is priced in.
Today's analysis turns to a stock we last covered in July . The Bank of Nova Scotia ( BNS ) , otherwise known as Scotiabank, is set to release its fiscal second-quarter earnings before the market opens on May 28th. Scotiabank has a broad investor base, so its Q2 earnings report is highly anticipated. Moreover, a volatile banking environment means Scotiabank's Q2 earnings will likely produce a few surprises.
According to Seeking Alpha's data bank, analysts expect Scotiabank to deliver normalized earnings-per-share of $1.14 and revenue of $6.1 billion. The estimates are lower than Scotiabank's Q1 results. Moreover, frequent analyst revisions have occurred, lending us the opportunity to assess Scotiabank's prospects for ourselves....
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Scotiabank: Hold Rating Maintained Ahead Of Q2 Earnings