Company Performance - Axos Financial (AX) has returned 6.7% year-to-date, outperforming the Finance sector's average return of 5.8% [4] - The Zacks Consensus Estimate for Axos Financial's full-year earnings has increased by 2% over the past quarter, indicating improving analyst sentiment [3] Industry Context - Axos Financial is part of the Financial - Miscellaneous Services industry, which has seen an average loss of 3.3% this year, highlighting Axos Financial's relative strength [5] - The Finance sector includes 857 individual stocks and currently holds a Zacks Sector Rank of 5, indicating its performance relative to other sectors [2] Comparative Analysis - Banco Santander-Chile (BSAC) has significantly outperformed the Finance sector with a year-to-date return of 25.5% and has a Zacks Rank of 1 (Strong Buy) [4][5] - The Banks - Foreign industry, to which Banco Santander-Chile belongs, has moved up by 21.8% this year, ranking 17 among 66 industries [6]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Axos Financial (AX) as a strong value stock based on its favorable valuation metrics and earnings outlook [2][4][7] Valuation Metrics - Axos Financial (AX) has a P/E ratio of 9.34, significantly lower than the industry average of 18.24, indicating potential undervaluation [4] - The P/B ratio for AX is 1.53, compared to the industry average of 3.30, suggesting that AX is attractively priced relative to its book value [5] - AX's P/CF ratio stands at 11.66, which is also lower than the industry average of 20.50, reinforcing the notion of AX being undervalued based on cash flow [6] Performance Insights - Over the past year, AX's Forward P/E has fluctuated between 6.93 and 12.11, with a median of 9.12, indicating variability in market perception [4] - The P/B ratio for AX has ranged from 1.22 to 2.06, with a median of 1.56, showing stability in its valuation compared to its historical performance [5] - AX's P/CF ratio has varied between 6.96 and 12.15, with a median of 10.14, further supporting its solid cash outlook [6] Conclusion - The combination of AX's strong valuation metrics and positive earnings outlook positions it as an impressive value stock in the current market [7]

Core Viewpoint - Axos Financial (AX) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the importance of changing earnings estimates in determining near-term stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors play a role in this relationship, as they adjust their valuations based on earnings estimates, leading to stock price movements when they buy or sell shares [3]. Business Improvement Indicators - The rising earnings estimates and the Zacks rating upgrade for Axos Financial suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [4]. Importance of Earnings Estimate Revisions - Empirical research indicates a strong correlation between earnings estimate revisions and stock movements, highlighting the significance of tracking these revisions for investment decisions [5]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, providing a structured approach to investment [6]. Current Earnings Estimates for Axos Financial - Axos Financial is projected to earn $7.30 per share for the fiscal year ending June 2025, reflecting a year-over-year decline of 4.7%. However, the Zacks Consensus Estimate has increased by 0.8% over the past three months, indicating positive sentiment among analysts [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of ratings, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, indicating superior earnings estimate revisions [8][9]. - The upgrade of Axos Financial to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [9].

Core Viewpoint - Axos Financial (AX) shares have increased by 9.5% in the past four weeks, closing at $65.50, with a mean price target of $84.17 indicating a potential upside of 28.5% [1] Price Targets and Analyst Estimates - The mean estimate consists of six short-term price targets with a standard deviation of $3.60, where the lowest estimate of $80 suggests a 22.1% increase, and the highest estimate of $88 indicates a 34.4% increase [2] - A low standard deviation signifies strong agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [7] Earnings Estimates and Analyst Optimism - Analysts show strong agreement in revising earnings estimates higher, which correlates with potential stock price increases [9] - Over the last 30 days, the Zacks Consensus Estimate for the current year has risen by 0.8%, with two estimates moving higher and no negative revisions [10] Zacks Rank and Investment Potential - AX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [11] - While consensus price targets may not be reliable for predicting stock gains, the implied direction of price movement appears to be a useful guide [11]

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks, focusing on companies believed to be undervalued based on fundamental analysis [2]. Company Analysis: Axos Financial (AX) - Axos Financial (AX) holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The current P/E ratio for AX is 8.53, significantly lower than the industry average of 15.59, suggesting that AX may be undervalued [4]. - Over the past year, AX's Forward P/E has fluctuated between a high of 12.11 and a low of 6.93, with a median of 8.95 [4]. - The P/B ratio for AX is 1.44, which is attractive compared to the industry average of 3.16, indicating a favorable valuation [5]. - AX's P/B ratio has ranged from a high of 2.06 to a low of 1.28 over the past 12 months, with a median of 1.57 [5]. - The P/CF ratio for AX is 10.36, which is also appealing when compared to the industry's average of 14.41, further supporting the undervaluation thesis [6]. - In the past year, AX's P/CF has varied between a high of 12.11 and a low of 6.96, with a median of 9.65 [6]. - Overall, the metrics suggest that Axos Financial is likely undervalued, and its strong earnings outlook positions it as one of the market's strongest value stocks [7].

Core Viewpoint - Axos Financial reported a revenue of $308.84 million for the quarter ended March 2025, marking a year-over-year increase of 4.8% and exceeding the Zacks Consensus Estimate by 0.72% [1] Financial Performance - Earnings per share (EPS) for the quarter was $1.81, down from $1.94 a year ago, with an EPS surprise of 4.02% compared to the consensus estimate of $1.74 [1] - The efficiency ratio was reported at 47.4%, better than the three-analyst average estimate of 47.9% [4] - Net Interest Margin remained stable at 4.8%, matching the average estimate [4] - Total non-performing assets were $188.86 million, significantly lower than the two-analyst average estimate of $244.19 million [4] - Total nonaccrual loans stood at $185.06 million, also below the two-analyst average estimate of $240.12 million [4] - Average balance of total interest-earning assets was $23.04 billion, slightly below the $23.30 billion average estimate [4] - Net annualized charge-offs to average loans were 0.1%, better than the 0.2% average estimate [4] - Net Interest Income was reported at $275.46 million, lower than the $277.97 million average estimate [4] - Total Non-Interest Income reached $33.37 million, exceeding the three-analyst average estimate of $30.07 million [4] - Income from mortgage banking and servicing rights was $1.50 million, above the two-analyst average estimate of $1.25 million [4] Stock Performance - Over the past month, shares of Axos Financial have returned -0.7%, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Performance - Axos Financial reported quarterly earnings of $1.81 per share, exceeding the Zacks Consensus Estimate of $1.74 per share, but down from $1.94 per share a year ago, representing an earnings surprise of 4.02% [1] - The company posted revenues of $308.84 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.72% and up from $294.77 million year-over-year [2] - Over the last four quarters, Axos Financial has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - Axos Financial shares have declined approximately 8.5% since the beginning of the year, compared to a 5.5% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.82 on revenues of $312.11 million, and for the current fiscal year, it is $7.24 on revenues of $1.24 billion [7] - The estimate revisions trend for Axos Financial is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which Axos Financial belongs, is currently in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Axos Financial (AX) Q3 2025 Earnings Call April 30, 2025 05:00 PM ET Company Participants Johnny Lai - Senior Vice President of Corporate Development & Investor RelationsGregory Garrabrants - President & Chief Executive OfficerDerrick Walsh - EVP and CFOKyle Peterson - Managing Director, Equity ResearchAndrew Liesch - Managing DirectorKelly Motta - MD - Equity ResearchEdward Hemmelgarn - CEO & Co-Chief Investment Officer Conference Call Participants Gary Tenner - MD & Senior Research Analyst Operator Greeti ...

Axos Financial (AX) Q3 2025 Earnings Call April 30, 2025 05:00 PM ET Company Participants Johnny Lai - Senior Vice President of Corporate Development & Investor RelationsGregory Garrabrants - President & Chief Executive OfficerDerrick Walsh - EVP and CFOKyle Peterson - Managing Director, Equity ResearchAndrew Liesch - Managing DirectorKelly Motta - MD - Equity ResearchEdward Hemmelgarn - CEO & Co-Chief Investment Officer Conference Call Participants Gary Tenner - MD & Senior Research Analyst Operator Greeti ...

Financial Data and Key Metrics Changes - The company generated over $700 million in net loan growth linked quarter, with a 19% year-over-year increase in book value per share [4][8] - Net interest income was $275 million for the quarter, up 5.3% from $262 million in the prior year period [5] - Net income was approximately $105.2 million for the quarter, compared to $104.7 million in the previous quarter [8] - The return on average common equity was 16%, and the return on average assets was 1.8% for the quarter [4] Business Line Data and Key Metrics Changes - Fund finance, equipment leasing, and lender finance showed strong originations and net loan growth this quarter [8] - Net annualized charge-offs to average loans were 9 basis points, compared to 7 basis points in the corresponding period last year [6] - Total non-accrual loans declined by $66.5 million linked quarter, improving the non-accrual loans to total loan ratio from 1.26% to 0.89% [7][16] Market Data and Key Metrics Changes - Total on-balance sheet deposits increased by 5.4% year-over-year to $20.1 billion [5][10] - Average loan yields for the quarter were 7.99%, down from 8.37% in the prior quarter [9] - Ending deposit balances were $20.1 billion, up 1% linked quarter and up 5.4% year-over-year [10] Company Strategy and Development Direction - The company is focused on maintaining a high net interest margin, targeting a range of 4.25% to 4.35% [13] - There is an emphasis on growing lower-cost deposits and cross-selling across selected lending businesses [13] - The company is actively investing in technology, including AI, to enhance operational efficiency and reduce costs [20][85] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining loan growth despite headwinds from high levels of repayment in the jumbo single-family and multifamily mortgage business [9] - The company anticipates loan growth to be in the high single digits to low teens range on an annual basis [14] - Management noted that the economic environment remains uncertain, but they do not foresee significant deterioration in credit quality [15][17] Other Important Information - The company repurchased approximately $28 million of common stock in the quarter and continued to buy back shares in April [5][62] - The effective tax rate for the quarter was 29%, with potential changes in California tax laws that could impact future rates [23][24] Q&A Session Summary Question: What areas is the company being cautious in regarding loan growth? - Management indicated caution in certain C&I segments due to potential administration changes and has shied away from logistical deals [28][30] Question: Can you clarify the increase in fee income this quarter? - Management noted that the increase was due to mortgage banking impacts, auto insurance recoveries, and additional loan fees, with no significant one-time items [34] Question: How does the company plan to maintain its efficiency ratio? - Management aims to keep the efficiency ratio stable by leveraging technology and controlling personnel expenses [40][42] Question: What is the outlook for net interest income in the next quarter? - Management expects net interest income to increase as average loan growth is anticipated to rise [44] Question: Can you provide insights on the improvement in special mention substandard loans? - Management explained that improvements were driven by payoffs and sales of loans that were previously classified as substandard [51][52] Question: How does the company view its capital position and buyback strategy? - Management believes there is excess capital and sees current stock prices as a good opportunity for buybacks while maintaining strong loan growth [62][63]