Canada's Atrium Mortgage Q2 EPS misses estimates on higher level of repayments
Canada's Atrium Mortgage Q2 EPS misses estimates on higher level of repayments
Overview
Canada mortgage lender's Q2 revenue fell 12% yr/yr as repayments outpaced new loans
Q2 EPS missed analyst expectations with basic EPS at C$0.24
Company renewed normal course issuer bid for up to 4.6 mln shares
Outlook
Atrium expects mortgage portfolio to exceed C$900 mln by end of 2026
Company anticipates increased loan origination activity from Western Canada in H2 2026
Atrium expects repayment activity to moderate over the balance of the year
Result Drivers
HIGH REPAYMENTS - Co said mortgage portfolio declined as repayments exceeded new loan advances despite active lending quarter
LOWER MARKET ACTIVITY - Co said activity levels in commercial and residential real estate markets remain well below historical averages
DECLINING INTEREST RATES - Weighted average interest rate on mortgage portfolio fell to 8.69% from 8.98% at year-end 2025
Company press release: ID:nNFC1xhQ9y
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| C$18.69 mln |
|
Q2 EPS | Miss | C$0.24 | C$0.25 (3 Analysts) |
Q2 Basic EPS |
| C$0.24 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy"
Wall Street's median 12-month price target for Atrium Mortgage Investment Corp is C$13.01, about 12.4% above its August 4 closing price of C$11.57
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)