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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Adjusted EPS | Miss | $3.66 | $4.55 (3 Analysts) |
Q4 EPS | $3.71 | ||
Q4 Net Income | $47.92 mln | ||
Q4 Net Interest Income | $104.52 mln | ||
Q4 Basic EPS | $3.73 | ||
Q4 Pretax Profit | $60.47 mln |
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.)