Earnings Preview: New York Community Bancorp

Jul.22.08 | About: New York (NYCB)

New York Community Bancorp (NYB) is expected to report Q2 earnings Wednesday, July 23 before market open, with a conference call scheduled for 9:30 am ET.


Analysts are looking for EPS of 25c on revenue of $239.4M. The consensus range for EPS is 23c to 28c, while the consensus range for revenue is $196.1M to $431.8M according to First Call.

Analyst Views

At the beginning of this month, New York Community Bancorp registered to sell 17.78M of additional shares for $339.1M. The company also announced that it had lowered the interest rate on $4B of debt. New York Community Bancorp expects the stock offering and the reduction in borrowing costs to result in significant margin expansion, 12c to 14c of annual EPS accretion, and tangible book value accretion beginning in Q3. During the conference call, investors may be looking to hear more about the impact of these measures on the bank.

Late last month, Citigroup downgraded the bank to Hold from Buy on valuation. The firm believed that the bank's positive attributes were reflected in the stock price. However, the firm continued to believe that the bank's strong capital position and low credit risk profile would allow it to benefit from the turbulent macro environment.