This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bank of America: Countrywide 'Hustle' Winner

The company expects the net interest margin to decline further. During New York Community's earnings conference call, CFO Thomas Cangemi said that "looking at Q2 versus Q3 our guidance was down 12 to 15 basis points and thus we came in at the low end our range," and that "my guess is that where we sit today, given where the interest rate environment is and looking at the loan pipeline, we are probably going to be on that same level, so probably down 12 to 15 in Q4," excluding loan prepayments.

Cangemi also said he expected the company to "see the bottom of the margin... well within 2013."

While New York Community Bancorp has continued its strong earnings performance, some analysts over the years have repeatedly questioned the attractive quarterly dividend payout of 25 cents, which the company has maintained for 35 consecutive quarters.

Sandler O'Neill analyst Mark Fitzgibbon said that during the third quarter, "the dividend payout ratio declined to 78% (currently a 6.9% dividend yield). However, we remain concerned that over time banking regulators will pressure institutions with high payout ratios to right-size their distributions."

Fitzgibbon rates New York Community Bancorp a "Hold," with a 12-month price target of $14.50.

The analyst said "in light of the quarterly results and updated guidance from management, we are raising our 2012 core EPS estimate by a $0.06 to $1.17, but lowering our 2013 EPS estimate by $0.07 to $0.98." Fitzgibbon added that "we continue to believe that shares of NYB are approaching fair value at just over 2x tangible book value versus the peer group median of about 1.5 times TBV," and that "on a forward earnings basis, shares are currently trading at 14.9x our 2013 EPS estimate versus the peer group median of 12.8x."

New York Community Bancorp's shares have now returned 19% year-to-date, following a 30% decline during 2011.

The shares for 1.9 times their reported Sept. 30 tangible book value of $7.22, and for 13 times the consensus 2013 earnings estimate of $1.04 a share, among analysts polled by Thomson Reuters. Based on the quarterly payout of 25 cents, the shares have a dividend yield of 7.18%.

4 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BAC $15.56 0.00%
FB $80.78 0.00%
AAPL $124.75 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs