Diversified bank holding company Merchants Bancorp (NASDAQCM:MBIN) will be reporting results this Monday after market close. Here’s what to look for.
Merchants Bancorp missed analysts’ revenue expectations by 12.7% last quarter, reporting revenues of $145.9 million, down 13.1% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ net interest income estimates and a significant miss of analysts’ EPS estimates.
Is Merchants Bancorp a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Merchants Bancorp’s revenue to be flat year on year at $159.2 million, slowing from the 17.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.12 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Merchants Bancorp has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Merchants Bancorp’s peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Atlantic Union Bankshares delivered year-on-year revenue growth of 86.2%, beating analysts’ expectations by 12.5%, and Seacoast Banking reported revenues up 19.6%, topping estimates by 5%. Atlantic Union Bankshares traded down 1.9% following the results while Seacoast Banking’s stock price was unchanged.
Read our full analysis of Atlantic Union Bankshares’s results here and Seacoast Banking’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 4% on average over the last month. Merchants Bancorp is up 3.9% during the same time and is heading into earnings with an average analyst price target of $41 (compared to the current share price of $34.69).
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