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Needham analyst Kyle Peterson initiated coverage on Axos Financial, Inc. AX with a Buy rating and a price target of $82.00.The analyst writes that, unlike traditional banks, the company avoids a broad branch strategy, enhancing profitability and efficiency while expanding its total addressable market.Importantly, Axos Financial holds a full banking license, which offers stickier and cheaper funding for loans compared to warehouse lines and enables in-house banking products, adds the analyst.The analyst says ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Axos Financial (AX) , which belongs to the Zacks Financial - Miscellaneous Services industry.This bank holding company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 7.23%.For the last reported quarter, Axos Financial came out with earnings of $1.83 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________________________________________________ FORM 10-K ☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2024 ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-37709 __________________________________________________________________________________________ AXOS FIN ...

Investment Thesis - Axos Financial has demonstrated strong performance with double-digit earnings and book value growth for the fiscal fourth quarter of 2024, suggesting a premium valuation is warranted compared to the sector median [2][4] - The stock is currently trading at a discount of 8.7x forward earnings, indicating potential for upside [2] Company Overview - Axos Financial is a diversified financial services company with approximately $22.6 billion in assets and $35.0 billion in assets under custody, comprising Axos Bank, Axos Clearing LLC, and Axos Invest [3] - Axos Bank offers consumer and commercial banking products through digital platforms, while Axos Clearing LLC serves as a full-service clearing firm, and Axos Invest provides digital investment advisory services [3] - The company has shown resilience during economically volatile times, with net interest income increasing from $477.6 million to $961.4 million over the past TTM [3] Performance Metrics - The return on average shareholder equity for the last twelve months ended June 30, 2024, was 21.6%, significantly higher than the sector median of 10% [4][5] - Axos Financial achieved a 26% year-over-year growth in tangible book value per share, with total non-performing loans decreasing by $9 million linked quarter [5] Management Quality - The quality of management at Axos Bank is a key factor in its outperformance, demonstrating competence in market trends, loan origination, and deposit management [6] - The capital to risk-weighted assets ratio was 13.80% as of June 30, 2024, indicating strong capital adequacy and prudent risk management [6] Commercial Real Estate (CRE) Loans - Axos Financial's CRE loans are primarily in multifamily properties, with a weighted average loan-to-value (LTV) ratio of 40%, reflecting prudent risk management [7] - The company has reduced exposure to certain CRE sectors, preparing for potential economic downturns, with multifamily loans remaining attractive due to ongoing rental demand [7] Valuation - The estimated fair value of Axos Financial's stock is $90, based on a projected 15% annual growth rate in book value and earnings, applying a premium earnings multiple of 11.5x [8] - The stock is considered remarkably cheap given its strong growth and profitability profile, with management actively buying back shares at a significant discount [8]

For the quarter ended June 2024, Axos Financial (AX) reported revenue of $290.92 million, up 23% over the same period last year. EPS came in at $1.83, compared to $1.50 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $296.02 million, representing a surprise of -1.72%. The company delivered an EPS surprise of +1.67%, with the consensus EPS estimate being $1.80.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how t ...

Financial Data and Key Metrics Changes - The company reported a net income of approximately $105 million for Q4 2024, representing a 20% increase year-over-year [7] - Earnings per share for the three and twelve months ended June 30, 2024, were $1.80 and $7.66, reflecting year-over-year growth of 23% and 51% respectively [7] - The tangible book value per share grew by 26% year-over-year [5] - The net interest margin was 4.65% for Q4 2024, up 46 basis points from 4.19% in Q4 2023, but down from 4.87% in Q3 2024 [6][12] Business Line Data and Key Metrics Changes - Total loan originations for investment were $2.5 billion for Q4 2024, up approximately 11% year-over-year [8] - Ending loan balances increased by 2.7% quarter-over-quarter and 16.9% year-over-year to $19.2 billion [5] - Average loan yields for Q4 2024 were 8.55%, down 10 basis points from the prior quarter but up 104 basis points year-over-year [8] Market Data and Key Metrics Changes - Total deposits increased by $256 million in Q4 2024 and by $2.2 billion for the fiscal year [11] - Non-interest bearing deposits were approximately $3 billion, up $220 million quarter-over-quarter [11] - The company maintained a diverse mix of funding, with consumer and small business deposits representing 62% of total deposits [11] Company Strategy and Development Direction - The company is focused on adding net new assets from existing and new advisors to grow assets under custody and cash balances [12] - Management emphasized the importance of integrating treasury management teams to enhance deposit growth [20] - The company plans to continue evaluating organic and inorganic growth initiatives while remaining opportunistic with capital deployment [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the loan growth outlook remains consistent, expecting high single digits to low teens year-over-year growth [16] - The company anticipates that net interest margin benefits from the FDIC loan purchase will be 30 to 40 basis points for fiscal year 2025 [12] - Management expressed optimism about maintaining net interest margin and returns above long-term targets in fiscal 2025 [15] Other Important Information - Non-performing loans decreased in various segments, with non-performing loans in the commercial specialty real estate portfolio remaining unchanged at approximately $26 million [10] - The company repurchased $13.2 million of common stock in Q4 2024 at an average share price of $48, with approximately $106 million remaining in the authorized share repurchase program [7] Q&A Session Summary Question: Deposit initiatives and success areas - Management discussed investments in treasury management teams and the integration of these teams to enhance deposit growth [20] Question: Trends in funding costs - Management noted a downward trend in funding costs and the ability to cut rates slightly [22] Question: Feedback on UDB rollout and AI opportunities - Management reported positive feedback on the UDB rollout and ongoing efforts to leverage AI for operational improvements [24][25] Question: Broker dealer fee income decline - Management indicated that the decline in broker dealer fee income was likely at a low point and attributed some fluctuations to one-time items [28] Question: Competitive dynamics and regulatory impacts - Management stated that they are not currently seeing significant competitive pressures regarding cash sorting fees [31] Question: Loan growth outlook and repayments - Management acknowledged unexpected loan repayments contributing to excess liquidity but maintained a positive outlook for loan growth [49][51]

Axos Financial (AX) came out with quarterly earnings of $1.83 per share, beating the Zacks Consensus Estimate of $1.80 per share. This compares to earnings of $1.50 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.67%. A quarter ago, it was expected that this bank holding company would post earnings of $1.72 per share when it actually produced earnings of $1.94, delivering a surprise of 12.79%.Over the last four quarters, the ...

Loan and Asset Management - Axos reported a loan balance of $19.803 billion in Q4 FY24, an increase of $486 million from Q3 FY24[2] - The company completed a purchase of $1.25 billion in loans from the FDIC at a 37% discount, with a total unpaid principal balance of $1.231 billion across various loan types[4] - The weighted average yield on total loans was 6.9%, with a weighted average loan-to-value (LTV) ratio of 58.8%[4] - The allowance for credit losses (ACL) stood at $261 million, representing 1.3% of total loans[14] - Non-accrual loans totaled $113 million, accounting for 0.57% of total loans outstanding[16] - The company reported a significant increase in asset-based and cash flow lending, with a growth of $180 million to $1.797 billion[3] - Multifamily loans accounted for a balance of $2.541 billion, down $122 million from the previous quarter[3] Deposits and Equity - Approximately 90% of deposits are FDIC-insured or collateralized, with total deposit balances reaching $19.803 billion as of June 30, 2024[11] - Total deposits rose to $19,359,217 thousand, compared to $19,103,532 thousand in the prior quarter, marking an increase of 1.33%[20] - Total stockholders' equity improved to $2,290,596 thousand, up from $2,196,293 thousand, indicating a growth of 4.29%[20] - The equity to assets ratio at the end of the period was 10.02%, up from 9.70% in the previous quarter[20] - Common equity tier 1 capital to risk-weighted assets increased to 12.01%, compared to 11.47% in the prior quarter[20] - Tier 1 leverage ratio to adjusted average assets was 9.43%, slightly up from 9.33% in the previous quarter[20] - Net capital as a percentage of aggregate debit items was 42.21%, an increase from 38.73% in the prior quarter[20] Income and Earnings - Net income for June 30, 2024, was $104,872,000, a decrease from $110,720,000 in the previous quarter[22] - Adjusted earnings for June 30, 2024, were $106,727,000, compared to $112,655,000 in the previous quarter[25] - Basic earnings per share (EPS) for June 30, 2024, was $1.84, down from $1.94 in the previous quarter[22] - Diluted EPS for June 30, 2024, was $1.80, compared to $1.91 in the previous quarter[22] - Non-interest income for June 30, 2024, was $30,861,000, down from $33,163,000 in the previous quarter[22] - Return on average assets for June 30, 2024, was 1.81%, a decrease from 1.98% in the previous quarter[22] - Return on average common stockholders' equity for June 30, 2024, was 18.81%, down from 20.71% in the previous quarter[22] Shareholder Value - Book value per common share increased to $40.26 as of June 30, 2024, from $38.48 in the previous quarter[22] - Tangible book value per common share increased to $37.26 as of June 30, 2024, from $35.46 in the previous quarter[22] - Tangible common stockholders' equity increased to $2,119,903 thousand as of June 30, 2024, up from $2,023,839 thousand in March 2024, representing a growth of 4.76%[27] - Book value per common share rose to $40.26 in June 2024, compared to $38.48 in March 2024, reflecting an increase of 4.63%[27] - Tangible book value per common share reached $37.26 in June 2024, up from $35.46 in March 2024, indicating a growth of 5.06%[27] - Common shares outstanding decreased to 56,894,565 as of June 30, 2024, from 57,079,429 in March 2024, a decline of 0.33%[27] - Goodwill and intangible assets decreased to $141,769 thousand in June 2024, down from $144,324 thousand in March 2024, a reduction of 3.54%[27] Asset Growth - Total assets increased to $22,855,334 thousand as of June 30, 2024, up from $22,642,133 thousand in March 31, 2024, representing a growth of 0.94%[20] - Net loans reached $19,231,385 thousand, an increase from $18,733,455 thousand in the previous quarter, reflecting a growth of 2.66%[20] - Customer, broker-dealer and clearing receivables decreased to $240,028 thousand from $292,630 thousand, a decline of 17.93%[20] - Securities—available-for-sale decreased to $141,611 thousand from $207,582 thousand, a decline of 31.87%[20] Strategic Focus - The company serves approximately 40% of U.S. Chapter 7 bankruptcy trustees, indicating a strong position in the bankruptcy servicing market[11] - Axos is focused on geographic expansion and enhancing team capabilities to improve its treasury and cash management services[11]

The market expects Axos Financial (AX) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released ...