Digital banking company Axos Financial (NYSE: AX) will be reporting earnings this Thursday afternoon. Here’s what to look for.
Axos Financial beat analysts’ revenue expectations last quarter, reporting revenues of $385.1 million, up 25.1% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.
Is Axos Financial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Axos Financial’s revenue to grow 18.9% year on year, improving from the 4.8% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Axos Financial rarely misses Wall Street’s revenue estimates.
Looking at Axos Financial’s peers in the regional banks segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Merchants Bancorp delivered year-on-year revenue growth of 20.1%, meeting analysts’ expectations, and OFG Bancorp reported revenues up 4.2%, topping estimates by 4.8%. OFG Bancorp traded up 7.6% following the results.
Read our full analysis of Merchants Bancorp’s results here and OFG Bancorp’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 10.3% on average over the last month. Axos Financial is up 19.4% during the same time and is heading into earnings with an average analyst price target of $109.50 (compared to the current share price of $98.93).
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