Diversified bank holding company Merchants Bancorp (NASDAQCM:MBIN) will be announcing earnings results tomorrow after the bell. Here’s what to expect.
Merchants Bancorp met analysts’ revenue expectations last quarter, reporting revenues of $182.2 million, up 1.7% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but a miss of analysts’ net interest income estimates.
Is Merchants Bancorp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Merchants Bancorp’s revenue to grow 7.5% year on year, slowing from the 14.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Merchants Bancorp has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Merchants Bancorp’s peers in the regional banks segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Byline Bancorp delivered year-on-year revenue growth of 4.6%, beating analysts’ expectations by 3.7%, and First Citizens BancShares reported flat revenue, topping estimates by 2%. Byline Bancorp traded up 1.1% following the results while First Citizens BancShares was also up 6.8%.
Read our full analysis of Byline Bancorp’s results here and First Citizens BancShares’s results here.
Investors in the regional banks segment have had steady hands going into earnings, with share prices up 1.7% on average over the last month. Merchants Bancorp is down 3.9% during the same time and is heading into earnings with an average analyst price target of $64 (compared to the current share price of $49.57).
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