Arbor Realty Trust, Inc. reports results for the quarter ended September 30 - Earnings Summary

What happened

Arbor Realty Trust reported quarterly adjusted earnings of 8 cents per share, down from 35 cents a year earlier. Revenue fell 1.6% to $37.67 million, below analyst expectations of $47.94 million. The company reported a quarterly loss of $85.35 million and a reported loss of 51 cents per share.

Confirmed

Global impact / market context

Falling profit per share and revenue below analyst estimates suggest the company is earning less from its lending business while costs or losses weigh on results. The large reported loss shows that some items outside adjusted earnings are hurting the company, which can reduce cash available and limit future lending.

Analyst inference

Analysts have cut earnings estimates over the past three months, and the average rating is hold with three holds and two sells. The median 12-month price target of $3.25 sits about 7.1% above the last closing price of $3.02, signaling limited expected upside.

Analyst inference

What to watch

1. Watch whether revenue recovers toward the $47.94 million analysts expected, because the $37.67 million reported shows a gap that affects how much the company can lend and earn. Confirmed
2. Watch for management plans to reduce the items behind the $85.35 million quarterly loss, since smaller losses would help protect cash available for lending and support future earnings. Proposed
3. Watch analyst estimate revisions and the hold rating, because continued negative revisions or downgrades could pressure the share price, which already fell 61.1% this year. Analyst inference

Evidence

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