Washington Federal Q3 EPS beats expectations on improved margins

Overview

• Washington Federal fiscal Q3 EPS of $0.73 beats analyst expectations, per LSEG data

• Net interest income rises to $168 mln, driven by improved margins

• Co repurchased 1.66 mln shares during quarter

Outlook

• Company notes tepid loan demand amid economic uncertainty

• Washington Federal anticipates continued cautious borrower behavior

Result Drivers

• IMPROVED MARGINS - Strong core earnings driven by improved net interest margin

• COST REDUCTION - Decreased cost of funds due to lower deposit rates and reduced borrowings

• SHARE REPURCHASE - Aggressive share repurchase contributed to EPS increase and tangible book value growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for WaFd Inc is $29.50, about 0.2% above its July 16 closing price of $29.45

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw6PDPyca