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.
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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.
