Flagstar Bank Q3 adj EPS misses expectations
Overview
US regional bank's Q3 revenue rose and beat analyst expectations, adjusted EPS missed
Company completed $250 mln share buyback
Outlook
Company now expects to achieve long-term strategic objectives in 2028, delayed from 2027
Result Drivers
NET INTEREST INCOME - Co said higher net interest income and margin expansion drove operating performance
LOAN AND DEPOSIT GROWTH - Co attributed results to growth in commercial and industrial loans and deposits
CREDIT COSTS - Co said higher provision for credit losses was driven by rising interest rates and NYC rent regulation impact
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $530 mln | $487.77 mln (16 Analysts) |
Q3 Adjusted EPS | Miss | $0.01 | $0.08 (18 Analysts) |
Q3 EPS | $0.01 | ||
Q3 Net Income | $3 mln | ||
Q3 Net Interest Income | $460 mln | ||
Q3 Credit Loss Provision | $76 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Flagstar Bank, National Association is $16.00, about 39.8% above its October 22 closing price of $11.44
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 15 three months ago
Reuters Recommended Reads
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Oct 22 - Customers Bancorp Q3 net income rises on higher net interest income, deposit growth
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)