Washington Federal (WFSL) - Bear of the Day

We are downgrading our recommendation on Washington Federal (WFSL) to Underperform from Neutral based on its sizable exposure to risky loan portfolios and rising costs. Fiscal fourth-quarter 2010 earnings missed the Zacks Consensus Estimate by a nickel.

Results primarily benefited from a rise in revenue and a fall in the provision for loan losses. On the other hand, a weak loan demand and an increase in operating expenses were among the negatives.

We are concerned about the company's significant exposure to real estate markets. We also believe that the ongoing soft market conditions will continue to force the company to aggressively write down problem assets.
 
WASH FEDL INC (WFSL): Free Stock Analysis Report
 
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