U.S. Markets close in 3 hrs 32 mins
  • S&P 500

    4,236.86
    -10.58 (-0.25%)
     
  • Dow 30

    34,251.83
    -227.77 (-0.66%)
     
  • Nasdaq

    14,123.32
    +53.89 (+0.38%)
     
  • Russell 2000

    2,333.26
    -2.55 (-0.11%)
     
  • Crude Oil

    71.44
    +0.53 (+0.75%)
     
  • Gold

    1,865.70
    -13.90 (-0.74%)
     
  • Silver

    28.08
    -0.07 (-0.25%)
     
  • EUR/USD

    1.2127
    +0.0021 (+0.1698%)
     
  • 10-Yr Bond

    1.4960
    +0.0340 (+2.33%)
     
  • Vix

    16.73
    +1.08 (+6.90%)
     
  • GBP/USD

    1.4116
    -0.0001 (-0.0056%)
     
  • USD/JPY

    109.9830
    +0.3480 (+0.3174%)
     
  • BTC-USD

    40,292.95
    +3,376.43 (+9.15%)
     
  • CMC Crypto 200

    1,010.17
    +41.33 (+4.27%)
     
  • FTSE 100

    7,146.68
    +12.62 (+0.18%)
     
  • Nikkei 225

    29,161.80
    +213.07 (+0.74%)
     

News Flash: 2 Analysts Think Broadmark Realty Capital Inc. (NYSE:BRMK) Earnings Are Under Threat

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

The latest analyst coverage could presage a bad day for Broadmark Realty Capital Inc. (NYSE:BRMK), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

After this downgrade, Broadmark Realty Capital's dual analysts are now forecasting revenues of US$133m in 2020. This would be a modest 4.4% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 1976% to US$0.83. Previously, the analysts had been modelling revenues of US$158m and earnings per share (EPS) of US$1.01 in 2020. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a considerable drop in earnings per share numbers as well.

See our latest analysis for Broadmark Realty Capital

NYSE:BRMK Past and Future Earnings May 14th 2020
NYSE:BRMK Past and Future Earnings May 14th 2020

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Broadmark Realty Capital's revenue growth is expected to slow, with forecast 4.4% increase next year well below the historical 41% p.a. growth over the last three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 55% next year. Factoring in the forecast slowdown in growth, it seems obvious that Broadmark Realty Capital is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Broadmark Realty Capital, and their negativity could be grounds for caution.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2021, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.