Axos Financial (NYSE:AX) Releases Quarterly Earnings Results, Misses Estimates By $0.23 EPS

Axos Financial (NYSE:AX) issued its quarterly earnings results on Thursday. The company reported $1.90 earnings per share for the quarter, missing the consensus estimate of $2.13 by ($0.23), FiscalAI reports. Axos Financial had a net margin of 22.66% and a return on equity of 16.98%. The company had revenue of $392.25 million for the quarter, compared to the consensus estimate of $369.36 million. During the same quarter in the previous year, the business earned $1.81 earnings per share.

Here are the key takeaways from Axos Financial’s conference call:

• Axos reported broad double‑digit year‑over‑year growth across core metrics — diluted EPS +18.7%, double‑digit growth in net interest income, ending loans and deposits, and >16% return on average common equity.
• Strong loan and funding momentum: ending loan balances grew ~$800M linked quarter (ex. SFR warehouse) with a target of low‑to‑mid‑teens annual organic loan growth, and management is adding liquidity via the $2.3B Jenius deposit acquisition (closing) and a announced $3.2B Capital One IRA/CD deposit purchase.
• Net interest margin declined to 4.57% from 4.94% primarily due to FDIC‑purchased loan prepayments and two fewer days in the quarter, but management expects reported NIM to be roughly flat on an organic basis (excluding an estimated ~5 bps deposit purchase premium).
• Credit stress picked up: net charge‑offs rose to 31 bps (driven by a $14M charge‑off on a C&I loan and a newly delinquent syndicated C&I exposure), provision expense increased to $41M including a ~$20M specific reserve, though allowance coverage remains high (ACL to non‑accrual loans ~192.2%).
• Non‑interest income jumped to $86M helped by Verdant fees, mortgage servicing valuation gains, rental income and a one‑time $22M legal settlement, while AI and operational initiatives are starting to show modest efficiency benefits amid slightly higher non‑interest expense (~$186M).

Axos Financial Stock Performance

NYSE AX traded up $1.79 during trading hours on Thursday, hitting $96.69. The company’s stock had a trading volume of 366,791 shares, compared to its average volume of 353,567. Axos Financial has a 12 month low of $62.35 and a 12 month high of $101.92. The company’s 50 day simple moving average is $89.89 and its two-hundred day simple moving average is $88.01. The company has a market cap of $5.48 billion, a P/E ratio of 12.26 and a beta of 1.26. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.08 and a quick ratio of 1.08.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the company. Zacks Research downgraded Axos Financial from a “strong-buy” rating to a “hold” rating in a report on Wednesday, April 8th. Weiss Ratings upgraded Axos Financial from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, April 24th. Raymond James Financial upgraded Axos Financial from an “outperform” rating to a “strong-buy” rating and reduced their price target for the company from $110.00 to $100.00 in a report on Tuesday, April 7th. Keefe, Bruyette & Woods raised their price target on Axos Financial from $100.00 to $110.00 and gave the company a “market perform” rating in a report on Friday, January 30th. Finally, Jefferies Financial Group raised their price target on Axos Financial from $110.00 to $115.00 and gave the company a “buy” rating in a report on Friday, January 30th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $104.50.

Insider Buying and Selling

In related news, Director James John Court sold 11,163 shares of Axos Financial stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $101.01, for a total value of $1,127,574.63. Following the completion of the sale, the director directly owned 32,169 shares in the company, valued at approximately $3,249,390.69. This trade represents a 25.76% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Gregory Garrabrants sold 43,294 shares of Axos Financial stock in a transaction dated Wednesday, February 4th. The stock was sold at an average price of $99.10, for a total value of $4,290,435.40. Following the completion of the sale, the chief executive officer owned 1,418,751 shares of the company’s stock, valued at $140,598,224.10. The trade was a 2.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 59,303 shares of company stock worth $5,908,474. 4.85% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Axos Financial

Large investors have recently bought and sold shares of the business. Brown Brothers Harriman & Co. bought a new stake in shares of Axos Financial in the third quarter worth $29,000. Transamerica Financial Advisors LLC increased its position in Axos Financial by 163.7% during the fourth quarter. Transamerica Financial Advisors LLC now owns 443 shares of the company’s stock valued at $38,000 after acquiring an additional 275 shares during the last quarter. EverSource Wealth Advisors LLC increased its position in Axos Financial by 294.7% during the second quarter. EverSource Wealth Advisors LLC now owns 446 shares of the company’s stock valued at $34,000 after acquiring an additional 333 shares during the last quarter. NewEdge Advisors LLC grew its stake in shares of Axos Financial by 22.8% during the 4th quarter. NewEdge Advisors LLC now owns 1,105 shares of the company’s stock valued at $95,000 after purchasing an additional 205 shares during the period. Finally, Advisory Services Network LLC bought a new stake in shares of Axos Financial during the 3rd quarter valued at about $104,000. 83.79% of the stock is currently owned by institutional investors.

About Axos Financial

Axos Financial, Inc (NYSE: AX) is a diversified online banking and financial services holding company headquartered in San Diego, California. The firm traces its origins to 1999 with the launch of Bank of Internet USA and rebranded as Axos Financial in December 2018 to reflect an expanded suite of digital offerings. Axos Financial operates through its wholly owned subsidiary, Axos Bank, providing a technology-driven banking platform that serves both retail and commercial clients across the United States.

Through its digital banking platform, Axos Financial delivers a range of deposit products, including checking and savings accounts, money market and certificate of deposit accounts, as well as individual retirement accounts.