Financial Data and Key Metrics Changes - The company reported net loan growth of $856 million linked quarter, with a net interest margin expansion of six basis points and an 18% year-over-year increase in book value per share [4][5] - Net interest income for the quarter was $280 million, up 7.7% from $260 million in the prior year period, with a net interest margin of 4.84% for the quarter, up from 4.78% in the previous quarter [5][10] - Net income was approximately $110.7 million for the quarter, compared to $105.2 million in the prior quarter, with diluted EPS of $1.92 compared to $1.81 in the previous quarter [6][7] Business Line Data and Key Metrics Changes - Total originations for investment, excluding single-family warehouse lending, increased by 5% linked quarter, resulting in net loan growth of approximately $856 million, representing a 4.2% linked quarter increase or 16% annualized [8] - Average loan yields for the quarter were 8% flat, with non-purchased loans at 7.66% and purchased loans at 14.9% [8] - Total non-accrual loans declined by $15 million linked quarter, improving the non-accrual loans to total loans ratio from 79 basis points to 71 basis points [6][12] Market Data and Key Metrics Changes - Ending deposit balances were $20.8 billion, up 3.4% linked quarter and 7.6% year over year, with demand money market and savings accounts representing 95% of total deposits [9][10] - Total assets under custody increased from $37.1 billion to $39.4 billion, with net new assets for the custody business increasing by $215 million [14][15] Company Strategy and Development Direction - The company is focused on executing strategic and operational initiatives, including investments in technology and operations to scale businesses and roll out new products faster [19] - The implementation of artificial intelligence is expected to improve operating efficiency and accelerate new product delivery [19] - The company is evaluating M&A opportunities to augment growth from existing businesses and team lift-outs, with a focus on specialty lending and non-banking businesses [17][20] Management Comments on Operating Environment and Future Outlook - Management expects organic loan growth to come in toward the mid to high end of the single-digit to low teens range on an annual basis in fiscal 2026 [12] - The credit quality of the loan book remains solid, with historic and current net charge-offs remaining low [12] - The change in income tax calculation methodology in California is expected to reduce the income tax rate by three percentage points starting in Q4 2025, boosting net income and EPS in fiscal 2026 and beyond [18][24] Other Important Information - The company repurchased approximately $31 million of common stock at an average price of $59 per share during a temporary market downturn [7] - The company has a healthy loan pipeline of approximately $2 billion as of July 25, 2025, with various categories contributing to growth [26] Q&A Session Summary Question: Loan yields and net interest margin outlook - Management indicated that while loan yields might be tighter, there are offsetting benefits on the funding side, resulting in a consistent net interest margin outlook [30][31] Question: Expense growth relative to revenue - Management targets that personnel and professional services cost growth should not exceed 30% of net interest income and non-interest income growth, while leveraging AI to improve efficiency [34][39] Question: Funding side opportunities and pricing competition - Management noted that funding costs may increase with accelerated loan growth, but the Axos One product is performing well, potentially mitigating some pressure [48] Question: Capital priorities and M&A opportunities - Management is looking at various M&A opportunities, particularly in fee income and specialty finance businesses, while maintaining a focus on organic loan growth [56][57] Question: Multifamily loan sale reasoning - The sale was driven by favorable credit perspectives and interest from good buyers, resulting in a gain [61] Question: Asset quality and areas of concern - Management expressed confidence in the commercial real estate and C&I sides, with no significant material concerns noted [80]

Financial Performance - Net income for the quarter ended June 30, 2025, was $110.675 million[16] - Adjusted earnings for the same period were $111.814 million[22], or $1.94 per diluted share[22] - Total assets reached $24.783 billion[13] - Total deposits amounted to $20.829 billion[13] - The company's return on average assets was 1.85%[16], and return on average common stockholders' equity was 16.85%[16] Loan Portfolio - Total loans outstanding reached $21.552 billion[3, 9, 11] - Single Family Mortgage & Warehouse loans totaled $4.395 billion[9, 11] with an ACL of $12 million[9] - Multifamily & Commercial Mortgage loans amounted to $2.941 billion[9, 11] with an ACL of $26 million[9] - Commercial Real Estate loans were $6.937 billion[9, 11] with an ACL of $114 million[9] - Commercial & Industrial Non-RE loans reached $6.796 billion[9, 11] with an ACL of $122 million[9] Credit Quality - The allowance for credit losses (ACL) was $290.049 million as of June 30, 2025[13] - Non-accrual loans represented 0.79% of total loans[16]

[Report Overview](index=1&type=section&id=Report%20Overview) This document is the Axos Q4 Fiscal 2025 Earnings Supplement, released on July 30, 2025 - This document is the Axos Q4 Fiscal 2025 Earnings Supplement, released on July 30, 2025[1](index=1&type=chunk) [Loan Portfolio & Asset Quality](index=2&type=section&id=Loan%20Portfolio%20%26%20Asset%20Quality) This section analyzes the company's loan portfolio growth, credit loss allowances, and overall credit quality across various loan categories [Loan Growth by Category](index=2&type=section&id=Loan%20Growth%20by%20Category) The company's loan portfolio shows changes across various categories from Q2 FY25 to Q4 FY25, with specific figures for single-family mortgage, multi-family and commercial mortgage, commercial real estate, commercial & industrial, and auto & consumer loans Loan Growth by Category (Q2 FY25 to Q4 FY25, $ millions) | Loan Category | Q2 FY25 ($ millions) | Q3 FY25 ($ millions) | Q4 FY25 ($ millions) | Q3-Q4 FY25 Change ($ millions) | | :-------------------------------- | :------------------- | :------------------- | :------------------- | :----------------------------- | | Single Family Mortgage | 3,863 | 3,698 | 3,977 | 279 | | Multi-family & Commercial Mortgage | 1,729 | 2,059 | 2,330 | 271 | | Commercial Real Estate | 1,212 | 1,281 | 1,269 | (69) | | Commercial & Industrial - Non-RE | 2,567 | 2,519 | 2,633 | 316 | | Auto & Consumer | 430 | 400 | 400 | 30 | | Total Loans | 20,298 | 21,557 | 22,823 | 1,557 | [Allowance for Credit Losses (ACL) & Unfunded Loan Commitments Reserve (UCL)](index=4&type=section&id=Allowance%20for%20Credit%20Losses%20(ACL)%20%26%20Unfunded%20Loan%20Commitments%20Reserve%20(UCL)) This section details the changes in the Allowance for Credit Losses (ACL) and Unfunded Loan Commitments Reserve (UCL), and provides a breakdown of ACL by loan category as of June 30, 2025 [Change in ACL & UCL](index=4&type=section&id=Change%20in%20ACL%20%26%20UCL) The combined Allowance for Credit Losses (ACL) and Unfunded Loan Commitments Reserve (UCL) experienced a **$9.0 million decrease** - The combined Allowance for Credit Losses (ACL) and Unfunded Loan Commitments Reserve (UCL) experienced a change of **($9.0 million)**[7](index=7&type=chunk) [ACL by Loan Category](index=5&type=section&id=ACL%20by%20Loan%20Category) As of June 30, 2025, the Allowance for Credit Losses (ACL) is distributed across various loan categories, with specific percentages and amounts allocated to single-family mortgage, multi-family and commercial mortgage, commercial real estate, commercial & industrial, and auto & consumer loans Allowance for Credit Losses (ACL) by Loan Category (as of June 30, 2025, $ millions) | Loan Category | ACL ($ millions) | % of Loan Balance | | :-------------------------------- | :--------------- | :---------------- | | Single Family Mortgage | 439 | 51.20% | | Multi-family & Commercial Mortgage | 41 | 4.71% | | Commercial Real Estate | 69 | 6.93% | | Commercial & Industrial - Non-RE | 69 | 6.12% | | Auto & Consumer | 48 | 3.16% | | Total | 215 | 55.22% | [Credit Quality Overview](index=6&type=section&id=Credit%20Quality%20Overview) This section provides a snapshot of credit quality, detailing loans outstanding and non-accrual loans across various categories for June 30, 2025, March 31, 2025, and June 30, 2024 Credit Quality ($ millions) | Loan Category | Loans O/S (Jun 30, 2025) | Non-Accrual Loans (Jun 30, 2025) | % Non-Accrual (Jun 30, 2025) | Loans O/S (Mar 31, 2025) | Non-Accrual Loans (Mar 31, 2025) | % Non-Accrual (Mar 31, 2025) | Loans O/S (Jun 30, 2024) | Non-Accrual Loans (Jun 30, 2024) | % Non-Accrual (Jun 30, 2024) | | :-------------------------------- | :----------------------- | :--------------------------- | :--------------------------- | :----------------------- | :--------------------------- | :--------------------------- | :----------------------- | :--------------------------- | :--------------------------- | | Single Family Mortgage | 3,954 | 44 | 1.00% | 4,195 | 44 | 1.05% | 4,179 | 46 | 1.10% | | Multi-family & Commercial Mortgage | 2,941 | 33 | 1.12% | 3,341 | 34 | 1.02% | 3,862 | 35 | 0.91% | | Commercial Real Estate | 6,937 | 29 | 0.42% | 6,356 | 34 | 0.53% | 6,089 | 26 | 0.43% | | Commercial & Industrial - Non-RE | 796 | 6 | 0.91% | 790 | 7 | 1.11% | 5,241 | 4 | 0.08% | | Auto & Consumer | 483 | 2 | 0.41% | 447 | 2 | 0.45% | 432 | 2 | 0.47% | | Total | 25,521 | 170 | 0.79% | 27,290 | 185 | 0.89% | 19,803 | 113 | 0.57% | [Deposit Gathering & Business Lines](index=3&type=section&id=Deposit%20Gathering%20%26%20Business%20Lines) This section examines Axos's diversified deposit sources and strategic business lines, highlighting deposit safety and market reach [Diversified Deposit Gathering Sources](index=3&type=section&id=Diversified%20Deposit%20Gathering%20Sources) Axos maintains a diversified deposit base, with a significant portion being FDIC-insured or collateralized, sourced from various business lines including Fiduciary Services, Consumer Direct, Specialty Deposits, and Commercial & Treasury Management - Approximately **90%** of Axos's deposits are FDIC-insured or collateralized, indicating strong deposit safety[3](index=3&type=chunk) Diversified Deposit Gathering Business Lines (as of Q4 FY25, $ billions) | Business Line | Deposits ($ billions) | | :-------------------------------- | :-------------------- | | Fiduciary Services | 1.1 | | Consumer Direct | 11.6 | | Specialty Deposits | 2.2 | | Distribution Partners | 0.4 | | Axos Securities | 1.0 | | Small Business Banking | 0.6 | | Commercial & Treasury Management | 3.9 | - Axos serves approximately **40%** of U.S. Chapter 7 bankruptcy trustees through exclusive relationships and offers full-service digital banking, wealth management, and securities trading[4](index=4&type=chunk) - The company focuses on bank and securities cross-sell strategies to enhance business[5](index=5&type=chunk) [Selected Financial Information](index=7&type=section&id=Selected%20Financial%20Information) This section presents key financial data, including balance sheet, capital ratios, income statement, and performance ratios, across multiple reporting periods [Balance Sheet Highlights](index=7&type=section&id=Balance%20Sheet%20Highlights) As of June 30, 2025, Axos Financial's balance sheet highlights total assets, loans, deposits, and stockholders' equity across several quarters Selected Balance Sheet Data ($ thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total Assets | 24,783,078 | 23,981,154 | 23,709,422 | 23,569,084 | 22,855,334 | | Loans, net of ACL | 21,049,610 | 20,193,630 | 19,486,720 | 19,280,609 | 19,231,380 | | Total Deposits | 20,829,543 | 20,136,714 | 19,934,904 | 19,973,329 | 19,359,217 | | Total Stockholders' Equity | 2,680,677 | 2,603,900 | 2,521,962 | 2,407,280 | 2,290,596 | [Capital Ratios](index=7&type=section&id=Capital%20Ratios) Axos Financial maintains robust capital ratios, with Common Equity Tier 1, Tier 1 Capital, and Total Capital ratios consistently above regulatory minimums for both the company and Axos Bank Capital Ratios (%) | Capital Ratio | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Axos Financial, Inc.: | | | | | | | Common Equity Tier 1 (average assets) | 10.82% | 10.86% | 10.64% | 10.21% | 10.02% | | Tier 1 Capital (average assets) | 10.72% | 10.45% | 10.02% | 9.78% | 9.43% | | Common Equity Tier 1 (risk-weighted assets) | 12.51% | 12.39% | 12.42% | 12.44% | 12.01% | | Tier 1 Capital (risk-weighted assets) | 12.51% | 12.39% | 12.42% | 12.44% | 12.01% | | Total Capital (risk-weighted assets) | 15.39% | 15.21% | 15.23% | 15.29% | 14.84% | | Axos Bank: | | | | | | | Common Equity Tier 1 (average assets) | 10.24% | 10.14% | 9.85% | 9.82% | 9.74% | | Common Equity Tier 1 (risk-weighted assets) | 12.45% | 12.31% | 12.67% | 12.87% | 12.74% | | Total Capital (risk-weighted assets) | 13.74% | 13.49% | 13.86% | 14.06% | 13.81% | [Income Statement Highlights](index=8&type=section&id=Income%20Statement%20Highlights) For the three months ended June 30, 2025, Axos Financial reported net interest income, provision for credit losses, non-interest income, and net income, along with basic and diluted EPS Selected Income Statement Data ($ thousands) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Interest income | 442,413 | 432,722 | 456,068 | 484,262 | 453,428 | | Interest expense | 162,252 | 157,258 | 175,969 | 192,214 | 193,366 | | Net interest income | 280,161 | 275,464 | 280,099 | 292,048 | 260,062 | | Provision for credit losses | 14,997 | 14,500 | 12,248 | 14,000 | 6,000 | | Net interest income after provision | 265,164 | 260,964 | 267,851 | 278,048 | 254,062 | | Non-interest income | 41,285 | 33,373 | 27,799 | 28,609 | 30,861 | | Non-interest expense | 150,652 | 146,261 | 143,200 | 144,610 | 140,530 | | Income tax expense | 45,122 | 42,870 | 45,643 | 46,852 | 39,516 | | Net income | 110,675 | 105,206 | 104,687 | 112,340 | 104,872 | | Basic EPS | 1.96 | 1.84 | 1.83 | 1.97 | 1.84 | | Diluted EPS | 1.92 | 1.81 | 1.80 | 1.93 | 1.80 | [Performance Ratios](index=8&type=section&id=Performance%20Ratios) Key performance indicators for Axos Financial include return on average assets, return on average common stockholders' equity, interest rate spread, net interest margin, and efficiency ratios for both the company and its banking segment Selected Performance Ratios (%) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Return on average assets | 1.85% | 1.77% | 1.74% | 1.92% | 1.81% | | Return on average common stockholders' equity | 16.85% | 16.44% | 16.97% | 19.12% | 18.81% | | Interest rate spread | 3.97% | 3.91% | 3.91% | 4.13% | 3.63% | | Net interest margin | 4.84% | 4.78% | 4.83% | 5.10% | 4.68% | | Efficiency ratio | 46.87% | 47.36% | 47.20% | 45.99% | 48.31% | | Banking Business Segment – Efficiency ratio | 40.94% | 41.53% | 40.95% | 39.83% | 41.39% | | Net annualized charge-offs to average loans | 0.16% | 0.09% | 0.10% | 0.11% | 0.09% | | Non-accrual loans to total loans | 0.79% | 0.89% | 1.26% | 0.89% | 0.57% | | Non-performing assets to total assets | 0.71% | 0.79% | 1.06% | 0.75% | 0.51% | | Allowance for credit losses to total loans | 1.36% | 1.39% | 1.39% | 1.39% | 1.34% | | Allowance for credit losses to non-accrual loans | 170.23% | 151.28% | 108.75% | 149.32% | 229.84% | - The decrease in the Allowance for credit losses - loans to nonaccrual loans is primarily attributable to the change in nonaccrual loans[16](index=16&type=chunk) [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP financial measures, including adjusted earnings, adjusted EPS, and tangible book value, to their most directly comparable GAAP measures [Adjusted Earnings & EPS Reconciliation](index=9&type=section&id=Adjusted%20Earnings%20%26%20EPS%20Reconciliation) Adjusted earnings and adjusted EPS are non-GAAP measures that exclude the after-tax impact of non-recurring acquisition-related costs and other unusual charges, providing a clearer view of core operating performance - Adjusted earnings are defined as net income excluding the after-tax impact of non-recurring acquisition-related costs and other unusual or non-recurring charges[19](index=19&type=chunk) - Adjusted EPS is calculated by dividing non-GAAP adjusted earnings by the average number of diluted common shares outstanding[19](index=19&type=chunk) Adjusted Earnings & EPS Reconciliation ($ thousands, except per share data) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income (GAAP) | 110,675 | 105,206 | 104,687 | 112,340 | 104,872 | | Acquisition-related costs | 1,604 | 1,604 | 1,645 | 2,554 | 2,554 | | Other costs | (1,879) | — | — | — | — | | Income tax effects | (46) | 80 | (503) | (2) | (699) | | Adjusted earnings (Non-GAAP) | 111,814 | 105,011 | 105,829 | 114,142 | 106,727 | | Diluted EPS (GAAP) | 1.92 | 1.81 | 1.80 | 1.93 | 1.80 | | Acquisition-related costs per share | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | | Other costs per share | (0.03) | — | — | — | — | | Income tax effects per share | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | | Adjusted EPS (Non-GAAP) | 1.94 | 1.81 | 1.82 | 1.96 | 1.83 | [Tangible Book Value Reconciliation](index=9&type=section&id=Tangible%20Book%20Value%20Reconciliation) Tangible book value is a non-GAAP measure used to assess capital strength, calculated by adjusting common stockholders' equity for goodwill and other intangible assets - Tangible book value is defined as common stockholders' equity minus servicing rights, goodwill, and other intangible assets, providing insight into capital strength[21](index=21&type=chunk) Tangible Book Value Reconciliation ($ thousands, except per share data) | Metric | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Common stockholders' equity (GAAP) | 2,680,677 | 2,603,900 | 2,521,962 | 2,405,728 | 2,290,596 | | Less: Servicing rights, carried at fair value | 27,218 | 27,585 | 28,045 | 27,335 | 28,924 | | Less: Goodwill and other intangible assets | 134,502 | 135,966 | 137,570 | 139,215 | 141,769 | | Tangible book value (Non-GAAP) | 2,518,957 | 2,440,349 | 2,356,347 | 2,239,178 | 2,119,903 | | Book value per common share (GAAP) | 47.46 | 45.79 | 44.17 | 42.14 | 40.26 | | Less: Servicing rights per common share | 0.48 | 0.49 | 0.49 | 0.48 | 0.51 | | Less: Goodwill and other intangible assets per share | 2.38 | 2.39 | 2.41 | 2.44 | 2.49 | | Tangible book value per common share (Non-GAAP) | 44.60 | 42.91 | 41.27 | 39.22 | 37.26 | [Investor Relations](index=10&type=section&id=Investor%20Relations) This section provides contact information for key investor relations personnel and general investor inquiries - Key investor relations contacts are Greg Garrabrants (President and CEO), Derrick Walsh (EVP and CFO), and Johnny Lai (SVP Corporate Development and Investor Relations)[23](index=23&type=chunk) - For investor inquiries, contact investors@axosfinancial.com or jlai@axosfinancial.com, or call **858.649.2218**[23](index=23&type=chunk)

To break things down more, Axos Financial belongs to the Financial - Miscellaneous Services industry, a group that includes 93 individual companies and currently sits at #93 in the Zacks Industry Rank. Stocks in this group have gained about 8.2% so far this year, so AX is performing better this group in terms of year-to-date returns. For those looking to find strong Finance stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Axos Financial (AX) been one of thos ...

Core Viewpoint - The market anticipates Axos Financial (AX) will report a year-over-year decline in earnings despite higher revenues when it releases its results for the quarter ended June 2025 [1][3]. Group 1: Earnings Expectations - The consensus estimate for Axos Financial's quarterly earnings is $1.82 per share, reflecting a year-over-year decrease of 0.6% [3]. - Expected revenues for the quarter are $312.44 million, which represents a 7.4% increase from the same quarter last year [3]. Group 2: Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 2.53% higher, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Axos Financial is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.24%, suggesting a bearish outlook from analysts [11]. Group 3: Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [7][8]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically produced a positive surprise nearly 70% of the time [8]. Group 4: Historical Performance - In the last reported quarter, Axos Financial exceeded the expected earnings of $1.74 per share, achieving actual earnings of $1.81, resulting in a surprise of +4.02% [12]. - The company has beaten consensus EPS estimates in all of the last four quarters [13]. Group 5: Industry Comparison - Another company in the Zacks Financial - Miscellaneous Services industry, Marathon Digital Holdings, is expected to post earnings of $0.24 per share for the same quarter, indicating a year-over-year increase of 200% [17]. - Marathon Digital's expected revenues are $220.24 million, up 51.7% from the previous year, but it has an Earnings ESP of -190.72%, making it difficult to predict an earnings beat [18].

Core Viewpoint - Axos Financial (AX) shares have experienced a significant rally, driven by positive market sentiment and company-specific developments, including a decrease in the effective tax rate and upward revisions in earnings estimates [1][2][3]. Company Developments - Axos Financial shares increased by 6.2% in the last trading session, closing at $83.18, with notable trading volume [1]. - The company anticipates a reduction in its effective tax rate by approximately 3% starting in fiscal 2026, leading to a one-time, non-cash impairment charge of nearly $4 million in Q4 of fiscal 2025 [2]. - DA Davidson raised its price target for Axos Financial from $92.50 to $96.00, maintaining a buy rating, reflecting the company's strong growth and profitability metrics [3]. Earnings Expectations - The upcoming quarterly earnings report for Axos Financial is expected to show earnings of $1.84 per share, representing a year-over-year increase of 0.6%, with revenues projected at $312.44 million, up 7.4% from the previous year [4]. - The consensus EPS estimate for the quarter has been revised slightly higher over the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [5]. Industry Context - Axos Financial operates within the Zacks Financial - Miscellaneous Services industry, which is currently experiencing broader market optimism, contributing to investor confidence in financial services stocks [3][5]. - Another company in the same industry, HA Sustainable Infrastructure Capital, has seen its consensus EPS estimate remain unchanged at $0.64, reflecting a year-over-year change of 1.6% [6].

Company Overview - Axos Financial (AX) currently holds a Momentum Style Score of B, indicating a favorable position in momentum investing [3] - The company has a Zacks Rank of 2 (Buy), which is associated with a strong track record of outperformance [4] Price Performance - Over the past week, shares of Axos Financial have increased by 2.84%, while the Zacks Financial - Miscellaneous Services industry remained flat [6] - In a longer time frame, AX's monthly price change is 7.09%, significantly outperforming the industry's 0.72% [6] - Over the past quarter, shares have risen by 15.48%, and over the last year, they have gained 35.15%, compared to the S&P 500's increases of 6.75% and 11.69%, respectively [7] Trading Volume - The average 20-day trading volume for Axos Financial is 325,181 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the past two months, two earnings estimates for Axos Financial have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from $7.22 to $7.38 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions during the same period [10] Conclusion - Considering the positive price trends and earnings outlook, Axos Financial is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12]

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].