How did FLG's Q4 2024 earnings surprise analysts?

Flagstar Financial's (FLG) Q4 2024 earnings report revealed a mixed performance compared to analysts' expectations. Here's a detailed analysis: 1. **Estimate vs. Actual EPS**: FLG reported an estimated EPS of -$0.55 for Q4 2024. However, the actual EPS was -$0.41, which was better than expected and represented a significant improvement from the previous year's EPS of -$0.81. This resulted in an earnings surprise of approximately 25%, indicating a narrower-than-expected loss. 2. **Estimate vs. Actual Revenue**: The estimated revenue for Q4 2024 was $559.71 million. FLG achieved $461 million in net interest income, which was below the estimated revenue but still represented a respectable figure. This resulted in a revenue miss of approximately 18%, as the actual revenue was $98.71 million less than estimated. | Stock | Last Price | Last Change | Estimate EPS | Estimate Revenue | |------|------------|------------|---------------|------------------| | FLG | $10.44 | -3.24% | -0.55 | $559.71 million | 3. **Analyst Reception**: Despite the revenue miss, analysts have received the results positively. This is evident from the fact that several news articles highlight the company's progress on strategic priorities and improvements in key financial metrics such as the EPS and net interest income. 4. **Future Outlook**: FLG's CEO, Joseph Otting, highlighted during the earnings call that the Q4 results exceeded both internal projections and analysts' forecasts, marking a turning point toward profitability. This suggests that while the company may have missed some estimates, it has demonstrated strong performance and a clear path to profitability. In conclusion, FLG's Q4 2024 earnings report showed a better-than-expected EPS but fell short of revenue projections. Analysts have received the report positively, likely due to the company's improved financial metrics and optimistic future outlook.