Q: Comments please. Why the big drop in price, profit taking? The earnings report looked positive or is there something I'm missing. Can you provide an outlook on future growth? Should one continue to hold or move elsewhere, and if move on, what suggestions would you have.
Thank you
Thank you
5i Research Answer:
EPS of $2.98 beat estimates of $2.59; revenue of $284.6M beat estimates of $271M. The dividend was increased 5%. Earnings rose 12%. 2024 guidance was affirmed. Book value rose 1% to $71.33. Net interest margin was 2.01%, up 1 basis point. ROE was above 15%. Customer base grew 6%. Reserves for losses rose to 0.22% from 0.18%, but were stable from the 3Q. We think the quarter and outlook are fine. The stock is still up 37% in a year and well ahead of most banks. Based on consensus very strong growth is expected in 2024 (30%+) and 10%+ expected in 2025. We would be very comfortable staying the course here.