Pathward Financial Q3 revenue beats estimates

Overview

• Pathward Financial fiscal Q3 revenue rises 4%, beating analyst expectations

• Net income for fiscal Q3 declines slightly to $42.1 mln

• Co repurchased 603,780 shares, reflecting shareholder value strategies

Result Drivers

• NONINTEREST INCOME - Revenue growth driven by increased noninterest income, including secondary market revenue and tax services product fee income

• EARNING ASSET MIX - Improved earning asset mix led to a higher net interest margin, despite a decrease in net interest income

• TAX SERVICES REVENUE - 16% increase in tax services product revenue, driven by higher tax product fee income and refund advance fee income

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", 2 "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 Pathward Financial Inc is $88.00, about 8.9% above its July 25 closing price of $80.20

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw1SqTtYa