Commercial real estate lender Franklin BSP Realty Trust (NYSE:FBRT) will be reporting earnings this Wednesday afternoon. Here’s what investors should know.
Franklin BSP Realty Trust beat analysts’ revenue expectations by 10.7% last quarter, reporting revenues of $90.12 million, up 66% year on year. It was a slower quarter for the company, with a significant miss of analysts’ net interest income estimates and a significant miss of analysts’ EPS estimates.
Is Franklin BSP Realty Trust a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Franklin BSP Realty Trust’s revenue to grow 70.2% year on year to $93.65 million, improving from the 10.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 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. Franklin BSP Realty Trust has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Franklin BSP Realty Trust’s peers in the thrifts & mortgage finance segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Flagstar Financial’s revenues decreased 3% year on year, beating analysts’ expectations by 3.2%, and Columbia Financial reported revenues up 236%, topping estimates by 12.7%. Flagstar Financial’s stock price was unchanged after the resultswhile Columbia Financial was up 7.5%.
Read our full analysis of Flagstar Financial’s results here and Columbia Financial’s results here.
There has been positive sentiment among investors in the thrifts & mortgage finance segment, with share prices up 9% on average over the last month. Franklin BSP Realty Trust is up 1.4% during the same time and is heading into earnings with an average analyst price target of $14.38 (compared to the current share price of $10.16).
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