Farmer Mac Q4 adjusted EPS misses expectations

Reuters
Yesterday
Farmer Mac Q4 adjusted EPS misses expectations 

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.)

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