KEARNY FINANCIAL CORP/MD (NASDAQ:KRNY), the holding company for New Jersey-based Kearny Bank, reported financial results for its fiscal second quarter ended December 31, 2025. The market's immediate reaction was notably negative, with the stock trading down over 6% in pre-market activity, signaling investor disappointment despite the company surpassing revenue expectations.
Quarterly Earnings Snapshot
The bank reported net income of $9.4 million, or $0.15 per diluted share, for the quarter. This represents a marginal sequential decline from the $9.5 million, or $0.15 per share, earned in the prior quarter (Q1 Fiscal 2026). The key takeaways from the reported figures versus Wall Street expectations are:
- Revenue Beat: The company reported revenue of $43.54 million, which came in above analyst estimates of $39.94 million.
- EPS Miss: Reported earnings per share (EPS) of $0.15 fell short of the consensus estimate of $0.1785.
- Stable Dividend: The company's board declared a quarterly cash dividend of $0.11 per common share, payable on February 26, 2026, to shareholders of record as of February 12, 2026.
Market Reaction and Performance Context
The sharp pre-market decline appears to be a direct response to the earnings miss on the bottom line. While top-line revenue growth is positive, investors seem focused on the profitability metric that did not meet forecasts. This reaction is set against a backdrop of generally positive recent performance for the stock, which may have elevated expectations. Prior to this earnings release, the stock had shown gains over the past several weeks:
- Performance over the past month: +4.96%
- Performance over the past two weeks: +10.13%
- Performance over the past week: +8.54%
The pre-market sell-off suggests a "sell the news" event, where the actual results, particularly the EPS shortfall, did not justify the stock's recent appreciation.
Looking Ahead: Analyst Estimates
With no formal financial outlook provided in the earnings release, investor attention will turn to future analyst projections. Current consensus estimates for the coming periods provide a benchmark for performance.
- Next Quarter (Q3 Fiscal 2026): Analysts are forecasting revenue of approximately $41.74 million and EPS of $0.1989.
- Full Fiscal Year 2026: The full-year consensus calls for sales of $166.33 million and earnings per share of $0.765.
Kearny Financial's ability to return to earnings growth and meet these forward estimates will be critical in determining whether the post-earnings decline is a temporary setback or the start of a longer-term trend.
Press Release Summary
The primary announcement centered on the second-quarter earnings and the dividend declaration. The release highlighted the company's net income and per-share figures, drawing a comparison to the immediately preceding quarter to demonstrate stability. The declaration of the consistent quarterly cash dividend was a key element, underscoring the company's commitment to returning capital to shareholders even amidst a quarter where earnings slightly contracted.
For a detailed breakdown of historical earnings, future estimates, and analyst ratings, you can review the dedicated earnings page for KEARNY FINANCIAL CORP/MD (NASDAQ:KRNY).
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. Investing involves risk, including the potential loss of principal. Readers should conduct their own research and consult with a qualified financial professional before making any investment decisions.
