Pathward Financial Q4 net interest income falls on lower credit sponsorship

By Reuters News


Overview

  • U.S. financial holding company's fiscal Q4 net income and EPS were nearly flat yr/yr

  • Fiscal Q4 net interest income fell 8% yr/yr due to lower credit sponsorship and warehouse finance income

  • Noninterest income rose 12% and noninterest expense fell 10% in the quarter


Outlook

  • Pathward sees opportunities for revenue growth from Payments Sponsorship pipeline in fiscal 2027

  • Company anticipates impacts from technology investments and improved data analytics in fiscal 2027

  • Pathward expects to focus on credit performance and nonperforming loan resolutions in fiscal 2027


Result Drivers

  • COMMERCIAL FINANCE ORIGINATIONS - Co said strong structured finance originations drove higher commercial finance loan income

  • CARD AND DEPOSIT FEES - Co attributed noninterest income growth to higher card and deposit fee income

  • EXPENSE MANAGEMENT - Co said lower noninterest expense was due to disciplined expense management


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 EPS

$1.85

Q4 Net Income

$38.6 mln

Q4 Net Interest Income

$117.6 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for Pathward Financial Inc is $97.50, about 31.9% above its October 20 closing price of $73.93

  • The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%

  • Oct 20 - Ally Financial Q3 adjusted revenue beats estimates

  • Oct 20 - Synchrony Financial's Q3 net earnings fall 17%


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.