"We see additional pressure on the net interest margin and expect provisions will increase modestly to account for loan balance growth," analysts said. As a result, profitability levels in 2015 and 2016 will likely be reduced, they added.
The company, which operates as a holding company for New York Community Bank and New York Commercial Bank, offers banking products and financial services in New York, New Jersey, Florida, Ohio, and Arizona.
Shares of New York Community Bancorp closed down 0.67% to $17.91 on Thursday.
Separately, TheStreet Ratings team rates NEW YORK CMNTY BANCORP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEW YORK CMNTY BANCORP INC (NYCB) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 6.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry average. The net income increased by 3.5% when compared to the same quarter one year prior, going from $115.25 million to $119.26 million.
- The gross profit margin for NEW YORK CMNTY BANCORP INC is currently very high, coming in at 71.70%. Regardless of NYCB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NYCB's net profit margin of 24.78% compares favorably to the industry average.
- NEW YORK CMNTY BANCORP INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, NEW YORK CMNTY BANCORP INC increased its bottom line by earning $1.10 versus $1.08 in the prior year. For the next year, the market is expecting a contraction of 5.5% in earnings ($1.04 versus $1.10).
- You can view the full analysis from the report here: NYCB Ratings Report