Why BofI Holding (BOFI) Stock Is Gaining Today

NEW YORK (TheStreet) -- Shares of BofI Holding Inc. (BOFI) are up 6.70% to $85.64 on Tuesday after the company reported strong earnings for the 2014 third quarter.

BofI Holding, the parent company for BofI Federal Bank, reported net income was $14.6 million, an increase of 40.5% over the $10.4 million reported for the same quarter the previous year.

BofI's earnings attributable to common stock holders grew 44.6% to $14.5 million, or $1.00 per diluted share, compared to $10.1 million, or 74 cents per diluted share from the 2013 third quarter.

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The company saw a 47.1% rise in non-GAAP core earnings to $15.0 million for the 2014 third quarter versus $10.2 million from the year ago quarter.

TheStreet Ratings team rates BOFI HOLDING INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate BOFI HOLDING INC (BOFI) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 2.0%. Since the same quarter one year prior, revenues rose by 17.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, BOFI HOLDING INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for BOFI HOLDING INC is currently very high, coming in at 79.90%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.12% significantly outperformed against the industry average.
  • BOFI HOLDING INC has improved earnings per share by 30.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BOFI HOLDING INC increased its bottom line by earning $2.89 versus $2.34 in the prior year. This year, the market expects an improvement in earnings ($3.73 versus $2.89).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Thrifts & Mortgage Finance industry average. The net income increased by 34.7% when compared to the same quarter one year prior, rising from $9.77 million to $13.15 million.
  • You can view the full analysis from the report here: BOFI Ratings Report
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