Overview

• Agricultural finance provider's fiscal Q4 adjusted EPS missed analyst expectations

• Company announced 7% increase in quarterly dividend

Outlook

• Farmer Mac did not provide specific guidance for future quarters or the full year

Result Drivers

• BUSINESS VOLUME GROWTH - Record outstanding business volume grew by $3.8 bln, a 13% increase year-over-year, driven by increased lending capacity

• NET EFFECTIVE SPREAD - Net effective spread increased 13% from the prior-year period to a record $383.0 mln

• CREDIT EVENTS IMPACT - Borrower-specific credit events affected core earnings in Q4, but were isolated and did not alter positive performance trajectory

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the corporate financial services peer group is "buy"

• Wall Street's median 12-month price target for Federal Agricultural Mortgage Corp is $226.00, about 29.4% above its February 18 closing price of $174.65

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nPn71g3jCa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)