Franklin BSP Reports Earnings Miss Amid Resilient Revenue Growth

Franklin BSP Realty Trust (FBRT) announced quarterly earnings of $0.30 per share, falling short of the Zacks Consensus Estimate of $0.34 per share. This represents a decline from earnings of $0.39 per share reported a year earlier, with adjustments made for non-recurring items.

This latest quarterly report resulted in an earnings surprise of -11.76%. Previously, analysts expected the real estate investment trust to deliver $0.26 per share; however, it recorded a loss of $0.10, which presented a surprise of -138.46%.

Quarterly Performance Overview

Over the past four quarters, Franklin BSP has consistently failed to meet consensus EPS estimates. For the quarter ending December 2024, the company reported revenues of $55.95 million, exceeding the Zacks Consensus Estimate by 13.54%. In comparison, year-ago revenues stood at $54.76 million. Notably, Franklin BSP has exceeded consensus revenue estimates only once in the last four quarters.

The immediate price movement of Franklin BSP shares, influenced by this earnings report and future earnings expectations, will largely hinge on management’s insights during the upcoming earnings call. Year-to-date, Franklin BSP shares have seen a modest increase of 2.5%, lagging behind the S&P 500, which gained 2.9%.

Future Outlook for Franklin BSP

While the company has struggled in the current market, investors are keen to understand what lies ahead for Franklin BSP. A critical factor in this assessment is the company’s earnings outlook, which encompasses both current consensus earnings expectations for the upcoming quarters and any recent changes to those estimates.

Research indicates a strong connection between short-term stock movements and trends in earnings estimate revisions. Investors can monitor these revisions independently or utilize a comprehensive rating tool like the Zacks Rank, which adeptly tracks earnings estimate changes.

As of now, the revisions trend for Franklin BSP appears mixed. Although adjustments may occur following the latest earnings release, this status currently corresponds to a Zacks Rank #3 (Hold). Consequently, shares are anticipated to perform in line with the market. Current consensus EPS estimates project earnings of $0.37 on revenues of $51.32 million for the next quarter and $1.52 on $209.42 million in revenues for the entire fiscal year.

Industry Context and Competitive Outlook

It’s important to recognize the broader industry outlook, as it can significantly influence Franklin BSP’s stock performance. Presently, the Zacks Industry Rank places REIT and Equity Trust in the bottom 46% of over 250 Zacks industries. Historical data shows that the top 50% of Zacks-ranked industries consistently outperform those in the bottom half by a factor of over 2 to 1.

Another player in the same sector, NexPoint (NREF), is still awaiting its quarterly results, expected to release on February 27. Analysts anticipate NexPoint to report earnings of $0.78 per share, reflecting a 77.3% increase year-over-year, with revenue projections at $11.41 million, up 197.9% from the previous year.

Evaluating Investment in Franklin BSP Realty Trust

Before making an investment in Franklin BSP Realty Trust, Inc. (FBRT), investors may want to explore top stock picks for the next month. Zacks Investment Research offers insights with their free report on the 7 best stocks to buy.

Zacks Investment Research has dedicated itself to providing investment tools and independent research since 1978. Their Zacks Rank stock-rating system has historically outperformed the S&P 500, with an average gain of +24.08% annually (data from January 1, 1988, through May 6, 2024).

For the latest recommendations from Zacks Investment Research, download the report listing the 7 best stocks for the next 30 days. Click here to access the report.

Franklin BSP Realty Trust, Inc. (FBRT): Free Stock Analysis report

NexPoint Real Estate Finance, Inc. (NREF): Free Stock Analysis report

For the original article on Zacks.com, click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.