Royal Bank of Canada Reports Higher Q4 Results; Misses Estimates (RY)

Royal Bank of Canada Reports Higher Q4 Results; Misses Estimates (RY)


Before Wednesday’s opening bell, Royal Bank of Canada (RY) reported its fourth quarter and FY2014 financial results, which missed analysts’ estimates. 

RY’s Earnings in Brief

  • The company reported earnings of C$2.32 billion, or C$1.57 per share, up from C$2.10 billion, or C$1.39 per share, a year ago.
  • Revenue increased to C$8.38 billion from C$7.92 billion last year.
  • On average, analysts expected to see earnings of C$1.58 per share and C$8.40 billion in revenue.
  • For FY2014, the company reported earnings of C$8.91 billion, or C$6.00 per share, up from C$8.24 billion or C$5.49 per share, in 2013. Adjusted earnings were C$9.14 billion, or C$6.09 per share. Analysts expected to see earnings of C$6.16.
  • Revenue for the year was C$34.11 billion, up from C$30.68 billion in 2013. Analysts expected to see revenue of C$32.43 billion.

CEO Commentary

RY’s CEO and president Dave McKay noted: “We delivered another strong quarter of earnings growth, demonstrating the strength of our retail businesses and capital position, as well as our continued focus on efficiency management activities.”

RY’s Dividend

The company declared a quarterly dividend of 75 cents. The dividend will be paid on February 24 to shareholders of record on January 26.

Stock Performance

Royal Bank of Canada shares were mostly flat during pre-market trading Wednesday. The stock is up 6.26% YTD.

RY Dividend Snapshot

As of market close on December 2, 2014

RY dividend yield annual payout payout ratio dividend growth

Click here to see the complete history of RY dividends.

The Bottom Line

Royal Bank of Canada (RY) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.