How did HMST's Q1 2025 EPS forecast compare to past trends?

HomeStreet's (HMST) Q1 2025 EPS forecast of $0.16 reflects a significant improvement compared to the company's recent past performance, which has been marked by declining EPS and substantial losses.

1. **Recent Performance Context**:
- In the immediate prior quarter, HMST reported an EPS of -$1.46 for Q4 2023.
- The EPS had previously declined to -$7.65 for Q4 2024.
2. **Comparison with Forecasts**:
- Wedbush's Q3 2025 EPS estimate of $0.16 represents a notable recovery from the previous quarter's forecasts, which had indicated a much lower EPS of $0.05 for Q2 2025.
- This suggests a potential turnaround, with analysts expecting the company to show a modest profit in Q1 2025 after several quarters of negative earnings.
3. **Analyst Expectations and Market Sentiment**:
- Analysts are optimistic, with a consensus estimate for FY2025 EPS of $0.37, indicating a return to profitability.
- Recent revisions in earnings estimates have been upward, suggesting improving sentiment among analysts.
4. **Strategic Outlook**:
- HomeStreet is focusing on repricing loans and exploring strategic alternatives to enhance shareholder value.
- The company aims to return to profitability in the first half of 2025, which could be supported by its strategic initiatives.

In summary, HMST's Q1 2025 EPS forecast represents a substantial improvement over the company's recent historical performance and prior forecasts, reflecting optimism among analysts about the company's strategic direction and potential for profitability.