TFS Financial (NASDAQ:TFSL) Releases Quarterly Earnings Results, Hits Expectations

Key Points

• TFS Financial reported quarterly EPS of $0.08, matching analysts' estimates, and revenue of $85.24 million versus expectations of $84.70 million; return on equity was 4.79% and net margin 11.29%.
• The firm paid a quarterly dividend of $0.2825 (annualized $1.13), implying a 7.5% yield, but the dividend payout ratio is an elevated 353.13%, raising questions about sustainability.
• Shares traded at $15.04 with a market cap of $4.22 billion and a high P/E of 47.0; analysts' consensus is a Hold with an average target of $15 and mixed individual ratings.

TFS Financial (NASDAQ:TFSL - Get Free Report) announced its earnings results on Thursday. The bank reported $0.08 EPS for the quarter, hitting analysts' consensus estimates of $0.08, FiscalAI reports. The company had revenue of $85.24 million for the quarter, compared to analysts' expectations of $84.70 million. TFS Financial had a return on equity of 4.79% and a net margin of 11.29%.

TFS Financial Price Performance

TFSL traded up $0.32 on Thursday, hitting $15.04. 916,662 shares of the company's stock traded hands, compared to its average volume of 738,847. The company's 50 day simple moving average is $14.23 and its 200-day simple moving average is $14.07. The company has a current ratio of 1.55, a quick ratio of 1.55 and a debt-to-equity ratio of 2.60. TFS Financial has a one year low of $12.53 and a one year high of $15.42. The firm has a market cap of $4.22 billion, a price-to-earnings ratio of 47.00 and a beta of 0.68.

TFS Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, March 25th. Investors of record on Wednesday, March 11th were paid a dividend of $0.2825 per share. This represents a $1.13 annualized dividend and a yield of 7.5%. The ex-dividend date of this dividend was Wednesday, March 11th. TFS Financial's dividend payout ratio (DPR) is 353.13%.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on TFSL. Wall Street Zen lowered TFS Financial from a "hold" rating to a "sell" rating in a report on Saturday, January 31st. Zacks Research upgraded shares of TFS Financial to a "hold" rating in a research note on Monday, January 19th. Weiss Ratings reiterated a "buy (b-)" rating on shares of TFS Financial in a research report on Friday, March 27th. Finally, Piper Sandler initiated coverage on shares of TFS Financial in a research note on Friday, January 16th. They issued a "neutral" rating and a $15.00 price objective for the company. One research analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, TFS Financial currently has an average rating of "Hold" and an average target price of $15.00.

Insiders Place Their Bets

In related news, Director Anthony J. Asher acquired 5,000 shares of the business's stock in a transaction on Thursday, March 12th. The stock was acquired at an average cost of $13.37 per share, with a total value of $66,850.00. Following the acquisition, the director directly owned 49,314 shares in the company, valued at $659,328.18. This represents a 11.28% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Marc A. Stefanski sold 36,844 shares of TFS Financial stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $15.12, for a total transaction of $557,081.28. Following the sale, the chief executive officer owned 71,997 shares in the company, valued at approximately $1,088,594.64. The trade was a 33.85% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 78,000 shares of company stock worth $1,164,986 over the last ninety days. 0.72% of the stock is owned by company insiders.

Institutional Investors Weigh In On TFS Financial

Large investors have recently bought and sold shares of the business. Wells Fargo & Company MN raised its stake in TFS Financial by 10.1% during the fourth quarter. Wells Fargo & Company MN now owns 8,419 shares of the bank's stock valued at $113,000 after purchasing an additional 770 shares in the last quarter. Legal & General Group Plc grew its stake in shares of TFS Financial by 1.3% in the 2nd quarter. Legal & General Group Plc now owns 60,358 shares of the bank's stock worth $782,000 after buying an additional 789 shares in the last quarter. Osaic Holdings Inc. increased its holdings in shares of TFS Financial by 5.7% in the 2nd quarter. Osaic Holdings Inc. now owns 19,762 shares of the bank's stock worth $256,000 after buying an additional 1,057 shares during the last quarter. Ameriprise Financial Inc. raised its position in shares of TFS Financial by 9.5% during the 3rd quarter. Ameriprise Financial Inc. now owns 13,202 shares of the bank's stock valued at $174,000 after buying an additional 1,147 shares in the last quarter. Finally, Treasurer of the State of North Carolina raised its position in shares of TFS Financial by 5.9% during the 2nd quarter. Treasurer of the State of North Carolina now owns 24,472 shares of the bank's stock valued at $317,000 after buying an additional 1,353 shares in the last quarter. Institutional investors own 9.81% of the company's stock.

About TFS Financial

TFS Financial Corporation is a bank holding company for TFS Capital Bank, headquartered in Austin, Texas. The company offers commercial banking and specialty finance solutions designed to meet the unique needs of small and mid-sized businesses. Through its bank charter, TFS Financial provides a full suite of deposit products alongside a range of lending options tailored to growing enterprises.

The bank's lending portfolio includes equipment financing, working capital lines of credit, and term loans structured to support capital expenditures and operational needs.

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