Washington Federal (NASDAQ:WFSL) EPS Estimate Lowered on Margin Concerns

While Barclays likes the improvement of NIM for Washington Federal (NASDAQ:WFSL), they see its margins being under pressure going forward, and lowered their EPS estimate for 2011 in response.

Barclays says, "Overall, we are encouraged by the NIM improvement, but estimate that margins could be pressured in future quarters due to rising rates and WFSL's liability sensitive balance sheet. We are lowering our FY 2011 EPS estimate to $1.02 from $1.08 and introducing a FY 2012 estimate of $1.35. We believe that Washington Federal's strong capital position (12% TCE ratio) could enable it to repurchase significantly more shares or pursue M&A in the future, which could be a catalyst for the stock and provide upside to our estimates."

Barclays maintains an "Overweight" rating on Washington Federal, which closed Friday at $17.79, gaining $0.40, or 2.30 percent. Barclays has a price target on them of $20.