Q: Please comment on FN quarterly results. Buy, Sell or Hold?
5i Research Answer:
Revenue was $518M, up 20% and well ahead of estimates. Total assets were $45.77B, up 3.4% year over year. Still, residential mortgage originations were 20% the prior year as two large lenders discounted rates as part of their market share strategy. But this decline was offset by a 39% increase in multi-unit originations including renewals largely on growth in insured mortgages. Mortgages under administration increased 9%. Net income rose to $49.9M or 82c per share from $35.7M or 58c. Revenue was inline with consenus; EPS was 3.8% better. Considering higher interest rates and challenging market conditions, we would consider these results solid. We would consider it a BUY for income.