Royal Bank of Canada (RY) Reports Better than Expected EPS of C$2.78 in Q4
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Royal Bank of Canada (RY) Reports Better than Expected EPS of C$2.78 in Q4

The Royal Bank of Canada reported an EPS of C$2.78 against an expected EPS of C$2.63 for Q4.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Key Highlights

  • Total Revenue and Net Income: For the quarter ended October 31, 2023, the company reported a total revenue of C$13.03 billion and a net income of C$4.13 billion.
  • Earnings Per Share (EPS): Basic and diluted EPS for the quarter stood at C$2.78, compared to the expected EPS of C$2.63.
  • Year-Over-Year Comparison: The total revenue for the year ended October 31, 2023, was C$56.13 billion, up from C$48.99 billion in 2022. The net income for 2023 was C$14.87 billion, compared to C$15.81 billion in 2022.

Royal Bank of Canada’s (NYSE: RY) latest quarterly financial release reveals a significant achievement for the company, with total revenue reaching C$13.03 billion for the quarter ended October 31, 2023. This figure shows a notable increase from the $12.57 billion reported in the same quarter of the previous year. However, from the full-year perspective, the revenue climbed impressively from $48.99 billion in 2022 to $56.13 billion in 2023​​.

Net income also reflected strong performance. For the quarter, the net income stood at $4.13 billion, demonstrating robust growth compared to last year. Over the year, the company reported a net income of $14.87 billion, although this slightly decreased from the $15.81 billion recorded in 2022.

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EPS Beat by C$0.15 for the Quarter

For the quarter ended October 31, 2023, both the basic and diluted EPS were reported at C$2.78. This performance notably exceeds the market expectations of an EPS of $2.63, indicating the company’s stronger-than-anticipated financial health. This outperformance could be attributed to various strategic and operational efficiencies implemented by the company during the period​​.

The company’s share performance also reflects this positive trend. The number of common shares reported shows a stable share structure, ensuring that the EPS growth reflects increased profitability and is not merely a result of reduced share count. This stability is crucial for investors, providing a more accurate and reliable indicator of the company’s true earnings capacity.

The company’s latest financial report paints a picture of a robustly performing entity, surpassing market expectations in key areas. While the year-over-year net income decreases slightly, the overall revenue growth and EPS performance indicate a strong market position.