Flagstar Bank Q3 adj EPS misses expectations

By Reuters News


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

  • Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%

  • Oct 20 - Ally Financial Q3 adjusted revenue beats estimates

  • Oct 22 - Customers Bancorp Q3 net income rises on higher net interest income, deposit growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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