Regional banking company Flagstar Financial (NYSE: FLG) will be reporting results this Friday before market hours. Here’s what to expect.
Flagstar Financial missed analysts’ revenue expectations by 4% last quarter, reporting revenues of $490 million, down 22.6% year on year. It was a slower quarter for the company, with a significant miss of analysts’ net interest income estimates.
Is Flagstar Financial a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Flagstar Financial’s revenue to decline 22.6% year on year to $519.4 million, improving from the 44.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.13 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Flagstar Financial has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Flagstar Financial’s peers in the thrifts & mortgage finance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. PennyMac Financial Services’s revenues decreased 7.1% year on year, missing analysts’ expectations by 19.8%, and PennyMac Mortgage Investment Trust reported a revenue decline of 1.4%, falling short of estimates by 26.1%. PennyMac Financial Services traded down 7.5% following the results while PennyMac Mortgage Investment Trust was up 1.6%.
Read our full analysis of PennyMac Financial Services’s results here and PennyMac Mortgage Investment Trust’s results here.
There has been positive sentiment among investors in the thrifts & mortgage finance segment, with share prices up 7.3% on average over the last month. Flagstar Financial is up 11.9% during the same time and is heading into earnings with an average analyst price target of $13.25 (compared to the current share price of $12.44).
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