Pathward Financial's Q1 profit rises on higher interest income

Overview

• U.S. financial holding company's net income for fiscal Q1 rose to $35.2 mln, driven by increased interest income

• Company repurchased 651,804 shares at an average price of $72.07

Outlook

• Company did not provide specific financial guidance for fiscal 2026 in press release

Result Drivers

• INTEREST INCOME - Increase in interest income from commercial finance loans contributed to higher net income

• LOAN ORIGINATIONS - New loan originations rose to $1.89 bln, driven by consumer and commercial finance

• NONINTEREST INCOME DECLINE - Decrease in noninterest income due to lower rental and other 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 13.9% above its January 21 closing price of $77.25

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

Press Release: ID:nBwc31mYqa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.