Q: Hi Team,
What’s your take on Eqb earnings? Is the name a buy , hold or sell today ?
Thanks ,
Shane
What’s your take on Eqb earnings? Is the name a buy , hold or sell today ?
Thanks ,
Shane
5i Research Answer:
EPS of $2.81 beat estimates of $2.69 and revenues of $316.66M beat estimates of $299.14M. Adjusted ROE was 15.9% (reported 15.1%), sales grew 20% year-over-year, and its net interest margin expanded by 16 basis points year-over-year. Its total AUM grew 18% on the year, and customer growth for its EQ Bank segment grew 36% for the year. Management noted that the first half has been trending to its expectations with strong sales, earnings growth and ROE well-above its target at almost 16% year-to-date. Shares are up nicely after the release, and at a 7.1X forward earnings multiple, we would be comfortable buying this name today.