Pathward Financial updated its fiscal 2026 earnings per share guidance to a range of $7.80 to $8.20 and introduced a fiscal 2027 EPS target of $9.50 to $10.00. The revision follows a $34 million commercial finance provision in the fiscal third quarter, which Chief Financial Officer Gregory Sigrist said was elevated by roughly $28 million to $30 million, or about $1 per share. The provision was driven by specific reserves on two loans, a CECL reserve build, and a loan tied to what Chief Executive Officer Brett Pharr described as a sophisticated fraud. The company also moved certain renewable energy construction loans tied to a common developer to nonaccrual status, though management said it does not see these events as indicative of a broader systemic issue. The fiscal 2027 outlook assumes no rate changes, an effective tax rate of 18% to 22%, secondary market revenues of $5 million to $7 million per quarter, and share repurchases of 70% to 80% of net income.
Meta Financial Group IncPathward lowered fiscal 2026 EPS guidance due to a $34M commercial finance provision, indicating weaker earnings outlook.