Latest news with #AxosFinancial
Yahoo
9 hours ago
- Business
- Yahoo
AX Q1 Deep Dive: Loan Pipeline Growth, Deposit Cost Control, and Competitive Pricing Pressure
Digital banking company Axos Financial (NYSE:AX) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 4.8% year on year to $308.8 million. Its non-GAAP profit of $1.81 per share was 4.3% above analysts' consensus estimates. Is now the time to buy AX? Find out in our full research report (it's free). Revenue: $308.8 million vs analyst estimates of $305.7 million (4.8% year-on-year growth, 1% beat) Adjusted EPS: $1.81 vs analyst estimates of $1.74 (4.3% beat) Adjusted Operating Income: $147.8 million vs analyst estimates of $158.1 million (47.9% margin, 6.5% miss) Market Capitalization: $4.2 billion Axos Financial's first quarter results modestly exceeded Wall Street's top-line and bottom-line expectations, with management pointing to robust deposit growth and continued expansion in key lending verticals as major drivers. CEO Gregory Garrabrants cited 'double-digit year-over-year growth in earnings per share and book value per share for the 10th consecutive quarter,' highlighting strong performance in the company's core banking operations. Executives also acknowledged some competitive pressures in loan pricing, particularly in commercial and industrial lending, which partially offset gains from higher net interest margins and targeted cost reductions. Looking ahead, management is focused on maintaining disciplined loan growth, managing deposit costs, and navigating increased competition in select lending markets. Garrabrants noted that Axos is 'optimistic' about returning to its targeted loan growth range, supported by new team hires in commercial and specialty verticals and continued enhancements to its product suite. However, the company remains cautious about external headwinds, including prepayment trends in certain loan categories and ongoing pressure on loan spreads, suggesting that margin management and balanced growth will be key themes in the coming quarters. Management emphasized several factors shaping Q1 performance, including strategic deposit growth, margin management, and competitive dynamics in lending. Deposit Growth Across Verticals: Axos achieved $614 million in deposit growth, primarily from interest-bearing demand and savings accounts. Growth was diversified across consumer, small business, treasury management, and specialty verticals, supporting funding stability and flexibility in loan origination. Loan Book Expansion and Mix: Overall loan balances grew slightly, with strength in commercial and industrial (C&I) lending and single-family mortgage warehouse activity offsetting declines in multifamily and auto loans. Elevated prepayments in certain categories continued to weigh on net loan growth. Net Interest Margin Tailwinds: Net interest margin (NIM) rose to 5.17%, boosted by early payoff of FDIC-acquired loans. Excluding this, NIM was 4.87%. Management expects future NIM to stabilize within a 4.25%–4.35% range, with further benefit from deposit repricing initiatives. Competitive Loan Pricing: CEO Garrabrants acknowledged increased competition and pricing pressure, especially in club and syndicate lending deals. The company anticipates needing to make minor pricing concessions to maintain loan growth targets. Operational Investments and Expense Discipline: Recent hiring in commercial and specialty banking contributed to higher operating expenses, but management is focused on cost control as these new teams ramp up productivity. Technology investments, such as the white-label banking platform for advisors, are expected to streamline operations and support scalable growth. Management's outlook centers on disciplined loan growth, margin preservation, and continued expansion in deposit verticals amid a competitive lending environment. Loan Growth Pipeline: Axos expects organic loan growth in the high single digits to low teens, driven by new hires in commercial lending and a healthy pipeline across multifamily, C&I, and specialty verticals. Management cautioned that prepayment trends and pricing pressure could moderate net growth. Deposit Cost Management: The company is proactively repricing consumer deposits and leveraging business banking relationships to control funding costs. Management believes deposit cost discipline is critical for sustaining net interest margin if interest rates decline. Competitive Dynamics and Risk: Increased competition for quality lending opportunities may continue to compress spreads, particularly in syndicated and club deals. Management also highlighted potential headwinds from loan payoffs and the need to balance growth against prudent credit risk management. In future quarters, the StockStory team will watch (1) Axos's ability to deliver consistent loan growth despite intensified pricing competition, (2) the effectiveness of deposit repricing and expansion into new verticals in managing funding costs, and (3) the operational scaling of recently launched platforms like the white-label advisor offering. Execution in C&I and specialty lending, as well as cost discipline, will also be key performance indicators. Axos Financial currently trades at $75.48, up from $72.43 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
a day ago
- Business
- Yahoo
Is Axos Financial (AX) Stock Outpacing Its Finance Peers This Year?
The Finance group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Axos Financial (AX) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. Axos Financial is a member of the Finance sector. This group includes 857 individual stocks and currently holds a Zacks Sector Rank of #5. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Axos Financial is currently sporting a Zacks Rank of #2 (Buy). The Zacks Consensus Estimate for AX's full-year earnings has moved 2% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend. Based on the most recent data, AX has returned 6.7% so far this year. Meanwhile, the Finance sector has returned an average of 5.8% on a year-to-date basis. This means that Axos Financial is outperforming the sector as a whole this year. Banco Santander-Chile (BSAC) is another Finance stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 25.5%. Over the past three months, Banco Santander-Chile's consensus EPS estimate for the current year has increased 11.5%. The stock currently has a Zacks Rank #1 (Strong Buy). To break things down more, Axos Financial belongs to the Financial - Miscellaneous Services industry, a group that includes 88 individual companies and currently sits at #95 in the Zacks Industry Rank. This group has lost an average of 3.3% so far this year, so AX is performing better in this area. Banco Santander-Chile, however, belongs to the Banks - Foreign industry. Currently, this 66-stock industry is ranked #17. The industry has moved +21.8% so far this year. Going forward, investors interested in Finance stocks should continue to pay close attention to Axos Financial and Banco Santander-Chile as they could maintain their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AXOS FINANCIAL, INC (AX) : Free Stock Analysis Report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Gold Fields Limited (GFI) : Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII) : Free Stock Analysis Report Grand Canyon Education, Inc. (LOPE) : Free Stock Analysis Report Banco Santander Chile (BSAC) : Free Stock Analysis Report Shake Shack, Inc. (SHAK) : Free Stock Analysis Report Ferrari N.V. (RACE) : Free Stock Analysis Report Nutanix (NTNX) : Free Stock Analysis Report Life360, Inc. (LIF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
a day ago
- Business
- Yahoo
What Makes Axos Financial (AX) a Strong Momentum Stock: Buy Now?
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us. Below, we take a look at Axos Financial (AX), a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score. It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Axos Financial currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. You can see the current list of Zacks #1 Rank Stocks here >>> In order to see if AX is a promising momentum pick, let's examine some Momentum Style elements to see if this bank holding company holds up. Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area. For AX, shares are up 2.84% over the past week while the Zacks Financial - Miscellaneous Services industry is flat over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.09% compares favorably with the industry's 0.72% performance as well. While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Axos Financial have increased 15.48% over the past quarter, and have gained 35.15% in the last year. On the other hand, the S&P 500 has only moved 6.75% and 11.69%, respectively. Investors should also pay attention to AX's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. AX is currently averaging 325,181 shares for the last 20 days. The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with AX. Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost AX's consensus estimate, increasing from $7.22 to $7.38 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period. Taking into account all of these elements, it should come as no surprise that AX is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Axos Financial on your short list. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AXOS FINANCIAL, INC (AX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-05-2025
- Business
- Yahoo
Axos Financial Third Quarter 2025 Earnings: Beats Expectations
Revenue: US$294.3m (up 1.9% from 3Q 2024). Net income: US$105.2m (down 5.0% from 3Q 2024). Profit margin: 36% (down from 38% in 3Q 2024). The decrease in margin was driven by higher expenses. EPS: US$1.84 (down from US$1.95 in 3Q 2024). We check all companies for important risks. See what we found for Axos Financial in our free report. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 4.3%. Looking ahead, revenue is forecast to grow 7.3% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Banks industry in the US. Performance of the American Banks industry. The company's shares are up 3.4% from a week ago. While earnings are important, another area to consider is the balance sheet. We've done some analysis and you can see our take on Axos Financial's balance sheet. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
San Francisco Chronicle
30-04-2025
- Business
- San Francisco Chronicle
Axos Financial: Fiscal Q3 Earnings Snapshot
LAS VEGAS (AP) — LAS VEGAS (AP) — Axos Financial (AX) on Wednesday reported fiscal third-quarter net income of $105.2 million. The Las Vegas-based company said it had profit of $1.81 per share. The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.74 per share. The bank holding company posted revenue of $466.1 million in the period. Its adjusted revenue was $308.8 million, also exceeding Street forecasts. Five analysts surveyed by Zacks expected $306.6 million. Axos Financial shares have dropped 9% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $63.48, an increase of 25% in the last 12 months. _____
