Axos Financial (NYSE:AX) stock gained about 7% on Thursday’s after-hours following the release of strong results for the second quarter of Fiscal 2023. The bank’s quarterly performance benefitted from the expansion of its net interest margins and loan growth.
Revenues came in at $228.2 million, up 29.4% year-over-year, and also surpassed the analysts’ estimates of $217.3 million. Higher revenues can be attributed to a 37.3% rise in net interest income (NII) from higher average balances.
Meanwhile, the company posted adjusted earnings of $1.38 per share, higher than the Street’s estimate of $1.18 per share. Also, the reported figure compares favorably with $1.04 in the prior-year quarter.
Furthermore, the provision for credit losses in Q2 came in at $3.5 million, down from $4 million in the last year’s quarter.
For the third quarter of Fiscal 2023, Axos expects NII to remain flat or decline slightly on a sequential basis. Moreover, the company anticipates NIM to come down to the 4.25% to 4.35% range over the next few quarters.
Is Axos Financial a Buy?
The stock has a Strong Buy consensus rating based on four Buys and one Hold. The average AX stock price forecast is $48.80, implying an upside potential of 16% at current levels.
