Downgrade: Here's How Analysts See New York Community Bancorp, Inc. (NYSE:NYCB) Performing In The Near Term

The analysts covering New York Community Bancorp, Inc. (NYSE:NYCB) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

Following the downgrade, the latest consensus from New York Community Bancorp's nine analysts is for revenues of US$2.6b in 2024, which would reflect a huge 27% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 72% to US$2.55 per share. However, before this estimates update, the consensus had been expecting revenues of US$2.9b and US$2.10 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

View our latest analysis for New York Community Bancorp

The consensus price target fell 5.5% to US$11.58, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the New York Community Bancorp's past performance and to peers in the same industry. The analysts are definitely expecting New York Community Bancorp's growth to accelerate, with the forecast 60% annualised growth to the end of 2024 ranking favourably alongside historical growth of 21% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect New York Community Bancorp to grow faster than the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at New York Community Bancorp. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of New York Community Bancorp.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for New York Community Bancorp going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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