Benzinga | Jan 20, 2021 10:11AM EST

Flagstar Bancorp's Earnings: A Preview

On Thursday, January 21, Flagstar Bancorp (NYSE:FBC) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts predict Flagstar Bancorp will report earnings of $2.36 per share on revenue of $181.92 million. In the same quarter last year, Flagstar Bancorp reported earnings per share of $1.0 on revenue of $152.00 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Thursday, earnings would be up 136.0%. Sales would be up 19.68% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 2.32 1.33 0.77 0.95EPS Actual 3.88 2.03 0.80 1Revenue Estimate 174.68 M 145.00 M 140.84 M 144.80 MRevenue Actual 180.00 M 168.00 M 148.00 M 152.00 M

Stock Performance

Shares of Flagstar Bancorp were trading at $45.28 as of January 19. Over the last 52-week period, shares are up 22.54%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Flagstar Bancorp is scheduled to hold the call at 11:00:00 ET and can be accessed here.