Diversified bank holding company Merchants Bancorp (NASDAQCM:MBIN) will be reporting earnings this Tuesday afternoon. Here’s what to look for.
Merchants Bancorp beat analysts’ revenue expectations last quarter, reporting revenues of $185.3 million, down 4.4% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ net interest income estimates.
Is Merchants Bancorp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Merchants Bancorp’s revenue to grow 20.4% year on year, a reversal from the 13.1% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have 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 multiple times over the last two years.
Looking at Merchants Bancorp’s peers in the regional banks segment, some have already reported their Q1 results, giving us a hint as to what we can expect. OFG Bancorp delivered year-on-year revenue growth of 4.2%, beating analysts’ expectations by 4.8%, and Republic Bancorp reported a revenue decline of 11.3%, falling short of estimates by 4.8%. OFG Bancorp traded up 7.6% following the results while Republic Bancorp was also up 1.4%.
Read our full analysis of OFG Bancorp’s results here and Republic Bancorp’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 8.1% on average over the last month. Merchants Bancorp is up 15.3% during the same time and is heading into earnings with an average analyst price target of $48.67 (compared to the current share price of $48.96).
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