Toronto-Dominion Bank stock
is down 1.5% in premarket trading on Thursday after the Canadian bank with a sizeable U.S. presence said it does not expect to meet its medium-term adjusted earnings per share growth target of 7% to 10%. The bank blamed the mutual termination of its deal to buy First Horizon Corp.
as announced on May 4, as well as “deterioration in the macroeconomic environment.” TD’s second-quarter profit fell to C$3.35 billion, or C$1.72 a share, from C$3.81 billion, or C$2.07 a share, in the year-ago quarter. Adjusted profit of C$1.94 a share missed the analyst estimate of C$2.08 a share. Second-quarter revenue rose to C$12.37 billion from C$11.26 billion, and slightly beat the analyst view of C$12.35 billion. The bank’s Wealth Management and Insurance net income fell 16% to C$563 million, reflecting lower earnings in the wealth management business.