Flagstar Posts Thin 3Q EPS of 1 Cent as Shares Sit Near 52-Week Low
FLG is trading near its 52-week low of $10.57 (4.2% above the low).
Summary
Flagstar reported third-quarter EPS of just 1 cent, well short of the 8 cents analysts had estimated, a sharp step down from the $34 million of net income it posted in Q2. That Q2 figure had doubled sequentially on improving credit quality and the ongoing shift in its loan portfolio, so a penny of quarterly EPS implies that momentum stalled or reversed. The quarter came with net interest income of $460M, a $76M provision for credit losses and $74M of net charge-offs, and the bank pointed to a higher-for-longer interest rate environment. Full realization of its long-term objectives has shifted to 2028 from 2027. The stock is trading near its 52-week low, so the market was already skeptical; a near-zero quarter reinforces the pressure rather than relieving it. The $250M buyback announced in July is the main offset, but buybacks don't fix earnings.
At the time of this announcement, FLG was trading at $11.01 on NYSE in the Finance sector, with a market capitalization of approximately $4.7B. The 52-week trading range was $10.57 to $15.44. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.