Pathward Q3 EPS Plunges 24% to $1.37 on Credit Woes; Loan Originations Surge
CASH sits 25% above its 52-week low of $65.87.
Summary
Pathward's fiscal Q3 net income dropped 31% to $29.0M, with diluted EPS of $1.37 missing last year's $1.81 by a wide margin. The miss stems from credit deterioration in a few larger loans, one flagged since last year, overshadowing otherwise solid operating trends. Commercial finance interest income rose $6.1M, noninterest income grew 4%, and expenses fell 7%, but the credit provision spike dominated. New loan originations jumped 69% to $1.86B, driven by consumer lending from a new contract and partner growth. Tax services delivered a strong nine-month performance with product income net of losses up 29% to $77.1M. The company repurchased 303K shares at $92.18, signaling confidence, but the credit surprise will force traders to reassess asset quality.
At the time of this announcement, CASH was trading at $82.50 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.9B. The 52-week trading range was $65.87 to $101.26. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: BusinessWire.