FY2026 EPS Forecast for Royal Bank Of Canada Cut by Analyst

Key Points

• Erste Group Bank cut Royal Bank of Canada’s FY2026 EPS forecast to $11.40 from $11.53, slightly below the $11.45 consensus estimate; its FY2027 estimate is $12.41 per share.
• Analyst sentiment remains positive overall, with 10 Buy ratings and four Holds, giving RBC a consensus “Moderate Buy” rating and an average price target of $225.
• RBC reported quarterly EPS of $2.84, exceeding expectations, and raised its quarterly dividend to $1.76 per share, equivalent to a 3.4% annualized yield.

Royal Bank Of Canada (NYSE:RY - Free Report) TSE: RY - Analysts at Erste Group Bank decreased their FY2026 earnings per share (EPS) estimates for Royal Bank Of Canada in a report issued on Monday, July 27th. Erste Group Bank analyst H. Engel now expects that the financial services provider will post earnings of $11.40 per share for the year, down from their previous estimate of $11.53. The consensus estimate for Royal Bank Of Canada's current full-year earnings is $11.45 per share. Erste Group Bank also issued estimates for Royal Bank Of Canada's FY2027 earnings at $12.41 EPS.

Several other equities research analysts have also issued reports on RY. TD Securities reiterated a "buy" rating on shares of Royal Bank Of Canada in a report on Friday, May 29th. Weiss Ratings lowered shares of Royal Bank Of Canada from a "buy (a-)" rating to a "buy (b+)" rating in a research note on Monday, June 29th. Scotiabank restated an "outperform" rating on shares of Royal Bank Of Canada in a report on Monday, June 1st. Canadian Imperial Bank of Commerce reaffirmed a "neutral" rating on shares of Royal Bank Of Canada in a research note on Friday, May 29th. Finally, Raymond James Financial downgraded shares of Royal Bank Of Canada from an "outperform" rating to a "market perform" rating in a research report on Tuesday, May 12th. Ten analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $225.00.

Royal Bank Of Canada Price Performance

NYSE RY opened at $206.22 on Thursday. The company has a debt-to-equity ratio of 0.10, a current ratio of 0.82 and a quick ratio of 0.82. Royal Bank Of Canada has a 52-week low of $127.38 and a 52-week high of $218.57. The company has a 50 day simple moving average of $202.37 and a 200-day simple moving average of $181.70. The firm has a market capitalization of $285.94 billion, a price-to-earnings ratio of 18.53, a price-to-earnings-growth ratio of 1.68 and a beta of 0.80.

Royal Bank Of Canada (NYSE:RY - Get Free Report) TSE: RY last announced its quarterly earnings data on Thursday, May 28th. The financial services provider reported $2.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.81 by $0.03. The firm had revenue of $12.84 billion during the quarter, compared to the consensus estimate of $12.74 billion. Royal Bank Of Canada had a return on equity of 17.68% and a net margin of 15.92%.The business's revenue for the quarter was up 11.4% on a year-over-year basis. During the same period in the prior year, the business earned $3.12 EPS.

Royal Bank Of Canada Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, August 24th. Investors of record on Monday, July 27th will be given a dividend of $1.76 per share. The ex-dividend date of this dividend is Monday, July 27th. This represents a $7.04 annualized dividend and a dividend yield of 3.4%. This is a boost from Royal Bank Of Canada's previous quarterly dividend of $1.64. Royal Bank Of Canada's payout ratio is presently 44.56%.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Brighton Jones LLC increased its position in Royal Bank Of Canada by 33.1% during the fourth quarter. Brighton Jones LLC now owns 2,313 shares of the financial services provider's stock worth $279,000 after acquiring an additional 575 shares during the period. AQR Capital Management LLC grew its position in Royal Bank Of Canada by 60.9% during the first quarter. AQR Capital Management LLC now owns 11,779 shares of the financial services provider's stock worth $1,321,000 after buying an additional 4,460 shares in the last quarter. Sivia Capital Partners LLC increased its stake in Royal Bank Of Canada by 57.7% during the second quarter. Sivia Capital Partners LLC now owns 5,284 shares of the financial services provider's stock valued at $695,000 after acquiring an additional 1,934 shares during the period. Baird Financial Group Inc. lifted its position in shares of Royal Bank Of Canada by 39.1% in the 2nd quarter. Baird Financial Group Inc. now owns 13,555 shares of the financial services provider's stock worth $1,783,000 after acquiring an additional 3,811 shares during the period. Finally, Cerity Partners LLC increased its position in shares of Royal Bank Of Canada by 9.0% during the second quarter. Cerity Partners LLC now owns 47,721 shares of the financial services provider's stock valued at $6,279,000 after purchasing an additional 3,928 shares during the period. 45.31% of the stock is owned by institutional investors.

About Royal Bank Of Canada

Royal Bank of Canada NYSE: RY is a diversified financial services company and one of Canada's largest banks. Founded in 1864 in Halifax, Nova Scotia, the firm is now headquartered in Toronto, Ontario. It provides a broad range of banking and financial services to individuals, businesses, and institutional clients through a network of branches, digital platforms and international offices.

RBC operates across several principal business segments including personal and commercial banking, wealth management, insurance, investor and treasury services, capital markets, and global asset management.

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