FMP

FMP

Toronto-Dominion Bank (TD) Surpasses Earnings Estimates

  • Earnings Per Share (EPS) of $1.56 exceeded the estimated $1.46, marking a 6.85% earnings surprise.
  • Revenue reached approximately $10.29 billion, surpassing the estimated $9.75 billion.
  • Financial Ratios highlight TD's market valuation and cash flow efficiency, with a P/E ratio of approximately 9.88 and an enterprise value to operating cash flow ratio of about 36.77.

Toronto-Dominion Bank, known as TD, is a major player in the banking industry, trading on the NYSE:TD. The bank is part of the Zacks Banks - Foreign industry and is recognized for its strong financial performance. TD offers a wide range of financial services, including personal and commercial banking, wealth management, and insurance.

On December 4, 2025, TD reported earnings per share (EPS) of $1.56, surpassing the estimated $1.46. This represents a 6.85% earnings surprise, as highlighted by Zacks. The bank's performance marks an improvement from the $1.26 EPS reported in the same quarter last year. TD has consistently outperformed consensus EPS estimates over the past four quarters.

TD achieved a revenue of approximately $10.29 billion, exceeding the estimated $9.75 billion. However, Zacks reported that the bank recorded revenues of $11.06 billion for the quarter ending October 2025, slightly above the consensus estimate by 0.14%. This is a slight decrease from the $11.36 billion in revenues reported a year ago.

The bank's financial metrics provide further insights into its performance. TD has a price-to-earnings (P/E) ratio of approximately 9.88, indicating how the market values its earnings. The price-to-sales ratio is about 1.78, reflecting the company's revenue valuation. The enterprise value to sales ratio is around 6.08, while the enterprise value to operating cash flow ratio is approximately 36.77, highlighting cash flow efficiency.

TD's debt-to-equity ratio is notably high at 5.02, suggesting a significant reliance on debt financing. The current ratio is 0.18, indicating the company's short-term liquidity position. Despite these figures, TD's earnings yield is about 10.12%, offering a perspective on the return on investment.