Regional banking company Flagstar Financial (NYSE:FLG) will be reporting results this Friday before market open. Here’s what to look for.
Flagstar Financial missed analysts’ revenue expectations last quarter, reporting revenues of $512 million, up 3.2% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ net interest income estimates and EPS in line with analysts’ estimates.
Is Flagstar Financial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Flagstar Financial’s revenue to grow 9.4% year on year, a reversal from the 22.9% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Flagstar Financial has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Flagstar Financial’s peers in the banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Ladder Capital delivered year-on-year revenue growth of 107%, beating analysts’ expectations by 53.9%, and WaFd Bank reported revenues up 17.6%, topping estimates by 8.3%. Ladder Capital’s stock price was unchanged after the resultswhile WaFd Bank was down 1%.
Read our full analysis of Ladder Capital’s results here and WaFd Bank’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the banks stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.5% on average over the last month. Flagstar Financial is down 11.8% during the same time and is heading into earnings with an average analyst price target of $15.29 (compared to the current share price of $11.07).
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