Arbor Realty Trust Shares Drop 2.19% Ahead of 21.4% EPS Decline, 13.8% Yield Surge
Arbor Realty Trust shares fell 2.19% after an 11.41% rally ahead of Q1 earnings estimated at $0.22 per share (–21.4% YoY) on $234 million revenue projections (–2.8%). Dividend yield jumped to 13.80% with 73% EPS coverage while shares trade at a tangible book value discount.
1. Share Performance
Shares of Arbor Realty Trust fell 2.19% in the latest session after rising 11.41% in the prior period. The decline lagged the S&P 500’s 0.83% gain, the Dow’s 0.5% uptick and the Nasdaq’s 1.38% advance.
2. Earnings Outlook
Q1 earnings are projected at $0.22 per share, a 21.4% drop year-over-year, on revenue of $234 million, down 2.8%. Full-year consensus calls for $0.97 EPS (–9.35%) and $940.25 million revenue (+0.03%), with no recent changes to estimates and a Zacks Rank of #4 (Sell). Forward P/E stands at 8.99 versus the industry’s 7.99, while the REIT and Equity Trust industry ranks in the bottom 9% of over 250 industries.
3. Dividend and Valuation
The common dividend yield surged to 13.80%, covered at just 73% by distributable EPS, and shares trade below tangible book value. Series E preferreds yield a premium over U.S. Treasuries, offering potential upside if their discount to redemption value narrows.