Merchants Bancorp Up 8% To $28.75 After Earnings Beat

Merchants Bancorp (MBIN) reported better than expected earnings this afternoon for Q3 2023.

Analyst expectations for Merchants Bancorp earnings per share (EPS) were at $1.32, with the company surpassing those estimates with a reported EPS of $1.68, leading to a positive surprise of $0.36 per share (27%). Merchants Bancorp's earnings rose 38% year-over-year as the firm reported an EPS of $1.22 in its year-ago quarter. The positive annual growth shows the Financial Services company is performing well amid recent economic conditions.

Revenues were upbeat at $153.5 million. That is an increase of 33.98% in revenues from the year-ago report and is 13.25% higher than consensus estimates set at $135.6 million.

The stock is up 8% to $28.75 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Merchants Bancorp has been a strong performer over the past few months, garnering a high Long-Term Technical Rank by InvestorsObserver of 87, putting Merchants Bancorp in the top 25% of stocks. The firm was recently trading at a 52-week high of $33.59 on July 31, 2023 and set a 52-week low on May 4, 2023 at $21.5.

Merchants Bancorp is a US-based bank holding company. It operates multiple lines of business focusing on FHA (Federal Housing Administration) multi-family housing and healthcare facility financing and servicing, retail and correspondent residential mortgage banking, traditional community banking. The business segments of the company are: Multi-family Mortgage Banking which originates and services government-sponsored mortgages for multi-family and healthcare facilities; Mortgage Warehousing segment which funds agency-eligible residential loans as well as commercial loans to nondepository financial institutions; and Banking segment that provides a wide range of financial products and services to consumers and businesses, including commercial and other consumer loan products.