By Ketki Saxena
Investing.com -- The Toronto-Dominion Bank (TSX:TD)) is set to report its first quarter earnings for the fiscal year 2022 tomorrow, Thursday, March 2 at 1:30 p.m ET.
Earnings per share are estimated at C$2.04, up 11.5 % from EPS of C$1.83 the same time last year. Revenue is projected at C$10.84 billion, slightly higher than C$10.81 billion in the first quarter of 2021.
What to Expect at TD Earnings Tomorrow
TD, which is the last of the big 6 Canadian banks to report its Q1 2022 earnings, has beaten analyst forecasts on both earnings and revenue for the last 6 quarters. In Q4, TD reported earnings per share of C$2.09, posting a 6.9% surprise, and revenue of C$10.327 B, which beat analyst expectations by 4.3%.
Investors should also note that Canada's other big 5 banks (BMO, RBC, CIBC, BNS, and NA), all comfortably beat analyst estimates for earnings this season.
While all of Canada’s big banks have posted solid growth, TD is rated the top pick by analysts. Compared to its peers, TD is expected to benefit most from the Bank of Canada’s rate hike, announced earlier today. The higher rates will significantly boost interest rate incomes in the Canadian banking sector, and is expected to be a major driver for revenue growth.
TD also stands to benefit most of the Big Six banks from its U.S. Exposure. Earlier this week, TD announced its 1.34 B all-cash acquisition of Tennessee based First-Horizon.
TD Stock: Fair Price Target (NYSE:TGT), Financial Upside Potential
Over the past year, TD has delivered 2.9% total price return to investors, and is currently trading at a P/E multiple of 13.2x. TD also offers a 3.5% dividend yield to shareholders.
As of 11:50 p.m E.T today, TD shares were trading at C$ 100.71, up C$ 1.80 (1.82%) in the day’s trading, and with a 52 week range between C$78.03 - 109.07.
Investing Pro models suggest a fair price target of C$110.87, representing a Financial Upside potential 10.1%.