Regional Management Q3 revenue rises, beats estimates
Overview
US consumer finance firm's Q3 revenue rose 8% yr/yr, beating analyst expectations
Diluted EPS for Q3 climbed 13.4% yr/yr
Company repurchased 265,645 shares during the quarter
Outlook
Company expects bank partnership program to cover most branches by end of 2027
Regional Management plans to complete rollout of new origination scorecard in Q4 2026
Result Drivers
BANK PARTNERSHIP FEES - Co said record revenue was driven by fee income from its bank partnership originations
PORTFOLIO GROWTH - Growth in large loans, including auto-secured loans, contributed to higher net finance receivables
DISCIPLINED EXPENSE MANAGEMENT - Co said operating expense ratio improved 20 basis points yr/yr despite higher upfront origination costs
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $178.7 mln | $174.69 mln (3 Analysts) |
Q3 Net Income | $15.1 mln | ||
Q3 Credit Loss Provision | $66.2 mln | ||
Q3 Interest & Fee Income | $155.7 mln | ||
Q3 Pretax Profit | $19.8 mln |
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy."
Wall Street's median 12-month price target for Regional Management Corp is $43.00, about 30.7% above its October 27 closing price of $32.89
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)