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New York Community Bancorp, Inc. Yearly Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

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Simply Wall St
·4 min read
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Last week, you might have seen that New York Community Bancorp, Inc. (NYSE:NYCB) released its annual result to the market. The early response was not positive, with shares down 6.0% to US$11.06 in the past week. Results were roughly in line with estimates, with revenues of US$1.0b and statutory earnings per share of US$0.77. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.

See our latest analysis for New York Community Bancorp

NYSE:NYCB Past and Future Earnings, February 3rd 2020
NYSE:NYCB Past and Future Earnings, February 3rd 2020

Taking into account the latest results, the latest consensus from New York Community Bancorp's twelve analysts is for revenues of US$1.10b in 2020, which would reflect a reasonable 6.1% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to rise 8.7% to US$0.85. Yet prior to the latest earnings, analysts had been forecasting revenues of US$1.10b and earnings per share (EPS) of US$0.86 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Analysts reconfirmed their price target of US$12.03, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic New York Community Bancorp analyst has a price target of US$14.00 per share, while the most pessimistic values it at US$10.50. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that analysts are forecasting New York Community Bancorp to grow faster in the future than it has in the past, with revenues expected to grow 6.1%. If achieved, this would be a much better result than the 0.9% annual decline over the past five years. Compare this against analyst estimates for the wider market, which suggest that (in aggregate) market revenues are expected to grow 3.7% next year. Although New York Community Bancorp's revenues are expected to improve, it seems that analysts are also expecting it to grow faster than the wider market.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at US$12.03, with the latest estimates not enough to have an impact on analysts' estimated valuations.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for New York Community Bancorp going out to 2022, and you can see them free on our platform here.

You can also see whether New York Community Bancorp is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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.