Royal Bank of Canada's Upcoming Earnings Report: Analyst Expectations and Past Performance

Royal Bank of Canada (RY) is set to release its quarterly earnings report on Wednesday, August 27. Analysts expect an EPS of $2.36. The company's past performance has shown an EPS miss in the last quarter, leading to a 1.33% increase in share price. Long-term shareholders are likely bullish going into this earnings release.

Royal Bank of Canada (RY) is poised to release its quarterly earnings report on Wednesday, August 27. Analysts anticipate an earnings per share (EPS) of $2.36, according to Benzinga [1]. This figure is a critical indicator for investors, who are also eager to hear about the bank's guidance for the next quarter.

The company's past performance has shown an EPS miss in the last quarter, with an actual EPS of $2.19, which led to a 1.33% increase in share price on the subsequent day [1]. This trend suggests that market reactions are often driven by the company's guidance rather than just earnings performance.

Royal Bank of Canada's shares have been trading at $136.23 as of August 25, with a 14.78% increase over the last 52-week period. This positive return has likely contributed to the bullish sentiment among long-term shareholders heading into the earnings release [1].

Additionally, RBC Bearings Incorporated, a subsidiary of Royal Bank of Canada, has been performing well. The company has benefited from strong end-market performance, particularly in the Aerospace/Defense segment, which saw revenues up 10.4% year-over-year in the first quarter of fiscal 2026 [2]. RBC Bearings also anticipates net sales to be in the range of $445-$455 million for the second quarter of fiscal 2026, suggesting a year-over-year increase of 11.8-14.4% [2].

The company's recent acquisition of VACCO Industries for about $275 million in cash has further bolstered its market position. This acquisition includes expertise in engineered valves, regulators, and manifolds, which will expand RBC's customer offerings in the defense, space, and commercial markets [2].

In the past year, RBC Bearings' shares have surged 35.5% compared to the industry's 8.4% growth, indicating strong investor confidence [2]. The company remains committed to increasing shareholders' value through dividend payments and share repurchases, with $17.2 million in preferred stock dividends and $9.5 million in share repurchases in fiscal 2025 [2].

Investors should keep an eye on the earnings report for any updates on the bank's growth strategies and future prospects. The company's strong performance in various segments, along with its robust capital position, suggests a promising outlook for the future.

References:
[1] https://www.benzinga.com/insights/earnings/25/08/47332561/preview-royal-bank-of-canadas-earnings
[2] https://www.nasdaq.com/articles/heres-why-you-should-consider-investing-rbc-bearings-stock-now