Axos Financial beats Q2 profit estimates

Overview

• Banking firm's fiscal Q2 adjusted EPS beat analysts' expectations

• Net interest income rose 18.4% yr/yr

• Non-interest income surged 92% yr/yr, boosted by Verdant acquisition

Outlook

• Company did not provide specific guidance for future quarters or the full year

Result Drivers

• NET INTEREST INCOME - Axos reported strong net interest income growth due to organic loan growth and FDIC-purchased loan prepayments, per CEO Greg Garrabrants

• VERDANT ACQUISITION - Non-interest income surged due to operating lease rental and other income from Verdant acquisition, per CFO Derrick Walsh

• LOAN GROWTH - Ending net loan balances rose by $1.6 bln linked quarter due to growth in commercial real estate, capital calls, single-family warehouse, and equipment leasing

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "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 Axos Financial Inc is $106.00, about 15.4% above its January 28 closing price of $91.86

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

Press Release: ID:nBw26KHq4a

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