Regional banking company Flagstar Financial (NYSE: FLG) will be reporting earnings this Friday before market open. Here’s what investors should know.
Flagstar Financial beat analysts’ revenue expectations last quarter, reporting revenues of $539.8 million, down 5.6% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ tangible book value per share 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 12.9% year on year, a reversal from the 35% decrease it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. 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 Q1 results, giving us a hint as to what we can expect. WaFd Bank delivered year-on-year revenue growth of 10.5%, beating analysts’ expectations by 4%, and Columbia Financial reported revenues up 18.5%, topping estimates by 9.1%. WaFd Bank traded up 8.4% following the results while Columbia Financial was down 2.2%.
Read our full analysis of WaFd Bank’s results here and Columbia Financial’s results here.
There has been positive sentiment among investors in the banks segment, with share prices up 7.5% on average over the last month. Flagstar Financial is up 9.2% during the same time and is heading into earnings with an average analyst price target of $15.34 (compared to the current share price of $14.36).
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