Last week saw the latest release of annual results for Axos Financial, Inc. (NYSE: AX), an important step in the company’s journey to building a stronger business. Revenue was 4.0% lower than expected at $ 620 million. Statutory earnings per share were relatively better, with earnings per share of $ 3.56 roughly matching analyst estimates. Following the result, analysts updated their earnings model, and it would be good to know if they think there has been a significant change in the outlook for the company, or if it is like habit. So we’ve put together the latest post-earnings forecast to see what the estimates suggest for next year.
Check out our latest analysis for Axos Financial
After the latest results, the five analysts covering Axos Financial now forecast revenue of US $ 695.8 million in 2022. If achieved, this will reflect a significant 12% improvement in sales over the last 12 month. Statutory earnings per share are expected to decline 2.5% to $ 3.55 over the same period. Yet before the latest results, analysts were forecasting revenues of US $ 702.9 million and earnings per share (EPS) of US $ 3.57 in 2022. So it’s pretty clear that although analysts have put to update their estimates, there has been no major change in the company’s expectations as a result of the latest results.
Analysts reconfirmed their price target of US $ 55.50, demonstrating that the business is performing well and in line with expectations. Sticking to a single price target can be unwise, however, as the consensus target is actually the average of analysts’ price targets. As a result, some investors like to look at the range of estimates to see if there are any differing opinions on the valuation of the company. Currently, the most bullish analyst values Axos Financial at US $ 60.00 per share, while the most bearish the price at US $ 52.00. Still, with such a narrow range of estimates, it suggests that analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to put them in context to the industry itself. We can infer from the latest estimates that the forecast is for Axos Financial’s historical trends to continue, as the 12% annualized revenue growth through the end of 2022 is roughly in line with the 13% annual revenue growth. over the past five years. Compare that with the industry as a whole (as a whole), which analysts estimate will see its revenue fall by 3.1% per year. Thus, not only is Axos Financial expected to maintain revenue growth despite the more general slowdown, but it is also expected to grow faster than the industry as a whole.
The bottom line
The most obvious conclusion is that there hasn’t been a major change in the outlook for the company lately, with analysts keeping their earnings forecasts stable, in line with previous estimates. On the bright side, they haven’t made any changes to their revenue estimates – and they expect sales to be better than the industry as a whole. The consensus price target remained at US $ 55.50 as the latest estimates were not sufficient to impact their price targets.
With this in mind, we still believe that the long-term trajectory of the company is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Axos Financial through 2024, and you can view them for free on our platform here.
You should always take note of the risks, for example – Axos Financial has 1 warning sign we think you should be aware.
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