Kearny Financial Corp/MD (NASDAQ:KRNY) Reports Mixed Q4 2025 Earnings with EPS Miss and Revenue Beat

KEARNY FINANCIAL CORP/MD (NASDAQ:KRNY) reported its fourth-quarter and fiscal year-end 2025 results, delivering mixed performance relative to analyst expectations. The company posted earnings per share (EPS) of $0.11, slightly below the estimated $0.1326, while revenue came in at $40.83 million, surpassing the projected $36.61 million. The market reaction has been negative in pre-market trading, with shares down approximately 8.26%, suggesting investor disappointment despite the revenue beat.

Key Takeaways from the Earnings Report

• EPS Miss: The reported EPS of $0.11 fell short of the consensus estimate of $0.1326, marking a decline from the previous quarter’s $0.11 per share.
• Revenue Beat: Revenue for the quarter was $40.83 million, exceeding expectations by about 11.5%, indicating stronger-than-anticipated top-line performance.
• Dividend Declaration: The company declared a cash dividend of $0.11 per share, maintaining its payout level from the prior quarter.
• Net Income Stability: Net income for Q4 2025 was $6.8 million, marginally higher than the $6.6 million reported in Q3 2025.

Market Reaction and Performance

The pre-market decline of over 8% suggests that investors are focusing more on the EPS miss rather than the revenue beat. This reaction could reflect concerns about profitability pressures, particularly in a rising interest rate environment where net interest margins for regional banks may be under strain. Over the past month, the stock had gained nearly 4%, but the sharp drop post-earnings indicates a reassessment of near-term growth prospects.

Forward-Looking Estimates

Analysts have provided initial estimates for fiscal 2026, projecting full-year revenue of $171.35 million and EPS of $0.8058. For Q1 2026, expectations stand at $38.68 million in revenue and $0.153 EPS. While Kearny Financial did not provide explicit guidance in its press release, the market will likely monitor whether the company can align its earnings trajectory with these forecasts.

Conclusion

Kearny Financial’s latest earnings report highlights a divergence between revenue strength and profitability challenges. The market’s negative reaction underscores investor caution, particularly in a sector sensitive to interest rate fluctuations. For a deeper dive into Kearny Financial’s earnings history and future estimates, visit the earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.