Flagstar Bank Q2 revenue beats on loan growth
FLG•Outlook
- Flagstar Bank announces $250 mln share repurchase program, citing capital strength and long-term outlook
- Company says strong capital position provides flexibility for balance sheet growth and investments
- Flagstar expects continued focus on management and balance sheet diversification expense
Overview
- US regional bank's Q2 revenue beat analyst expectations, adjusted EPS missed consensus
- Company posted third consecutive quarter of profitability, with net income and PPNR up from Q1
- Flagstar announced $250 mln share repurchase program
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $516 mln | $491.61 mln (15 Analysts) |
| Q2 Adjusted EPS | Miss | $0.05 | $0.07 (18 Analysts) |
| Q2 EPS | $0.06 | ||
| Q2 Net Income | $34 mln | ||
| Q2 Net Interest Income | $440 mln | ||
| Q2 Credit Loss Provision | $18 mln |
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 7 "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 NA is $17.00, about 15.6% above its July 23 closing price of $14.71. The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago.
