Brookline Bancorp Earnings Preview

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Brookline Bancorp (NAS: BRKL) didn't hit the Street's expectations last quarter, but investors hope that it will rebound this quarter. The company will unveil its latest earnings on Wednesday, Oct. 19. Brookline Bancorp is a holding company for Brookline Bank, which is engaged in accepting consumer and commercial deposits, originating loans to individuals and commercial businesses, and providing cash management and investment advisory services.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Brookline Bancorp with three of five analysts rating it hold. Analysts don't like Brookline Bancorp as much as competitor Berkshire Hills Bancorp overall. Four out of four analysts rate Berkshire Hills Bancorp a buy compared to two of five for Brookline Bancorp. That rating hasn't budged in three months as analysts have remained steadfast in their opinion of the stock.
  • Revenue Forecasts: On average, analysts predict $26.9 million in revenue this quarter. That would represent a rise of 13.3% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.13 per share. Estimates range from $0.12 to $0.14.

What our community says:
Most CAPS All-Stars are skeptical of BRKL prospects, with 68.4% assigning it an "underperform" rating. The rest of the Fool community is also skeptical, with 41.1% giving it an "underperform" rating. Fools are skeptical of Brookline Bancorp, though the message boards have been quiet lately with only 25 posts in the past 30 days. Brookline Bancorp's bearish CAPS rating of one out of five stars falls short of the Fool community sentiment.

Management:
Brookline Bancorp's profit has risen year over year by an average of 14.3% over the past five quarters. The company's revenue has now risen for two straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows net margins over the past four quarters.

Quarter

Q2

Q1

Q4

Q3

Net Margin

18.9%

21%

19.3%

21.4%

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