Axos Financial Q3 adjusted EPS misses analyst expectations

Overview

• US digital bank's fiscal Q3 adjusted EPS missed analyst expectations

• Adjusted net income for Q3 also missed analyst expectations

• Company cites strong loan growth and expense discipline for yr/yr profit gains

Outlook

• Axos expects Jenius Bank deposit acquisition to close in June qtr, optimizing funding

• Company prepares for additional organic loan growth following deposit acquisition

Result Drivers

• LOAN GROWTH - Co said strong loan growth contributed to higher net interest income

• NON-INTEREST INCOME - Increase driven by one-time favorable legal settlement and Verdant acquisition, as well as higher advisory and mortgage banking fees

• EXPENSE DISCIPLINE - Modest rise in non-interest expense linked quarter due to lower salaries and operational efficiencies

Company press release: ID:nBw8FhKN4a

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 $110.00, about 15.9% above its April 29 closing price of $94.90

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

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