New York Community Bancorp, Inc. Just Beat EPS By 9.9%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that New York Community Bancorp, Inc. (NYSE:NYCB) released its quarterly result to the market. The early response was not positive, with shares down 10.0% to US$9.00 in the past week. The result was positive overall - although revenues of US$261m were in line with what the analysts predicted, New York Community Bancorp surprised by delivering a statutory profit of US$0.20 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for New York Community Bancorp

After the latest results, the 14 analysts covering New York Community Bancorp are now predicting revenues of US$1.15b in 2020. If met, this would reflect a meaningful 14% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to rise 6.1% to US$0.82. Before this earnings report, the analysts had been forecasting revenues of US$1.15b and earnings per share (EPS) of US$0.84 in 2020. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$11.53, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic New York Community Bancorp analyst has a price target of US$14.00 per share, while the most pessimistic values it at US$9.50. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that New York Community Bancorp's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 14%, well above its historical decline of 0.4% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 1.1% per year. Not only are New York Community Bancorp's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$11.53, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple New York Community Bancorp analysts - going out to 2022, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with New York Community Bancorp .

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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