Enova Q3 adjusted EPS beats estimates on healthy loan demand, stable credit
Overview
US online lender's Q3 revenue rose 26%, slightly beating analyst expectations
Adjusted EPS for Q3 rose 33%, beating analyst consensus
Company repurchased $46 mln of common stock during Q3
Outlook
Company did not provide specific financial guidance for future quarters or the full year in its press release
Result Drivers
HEALTHY DEMAND - Co said healthy demand supported double-digit growth in originations, receivables, revenue and adjusted EPS
STABLE CREDIT PERFORMANCE - Net charge-off ratio improved yr/yr and net revenue margin remained stable sequentially, though the delinquency ratio increased from a year earlier
FUNDING AND LIQUIDITY - Capital-markets execution, competitive funding costs and $1.3 bln of liquidity supported continued investment and share repurchases
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $1.009 bln | $1.002 bln (6 Analysts) |
Q3 Adjusted EPS | Beat | $4.48 | $4.42 (5 Analysts) |
Q3 Net Income | $107.30 mln | ||
Q3 Adjusted EBITDA | Beat | $269 mln | $246.33 mln (4 Analysts) |
Q3 Operating Income | $247.21 mln | ||
Q3 Pretax Profit | $142.84 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "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 Enova International, Inc. is $220.50, about 22.5% above its October 21 closing price of $180.05
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Oct 20 - Ally Financial Q3 adjusted revenue beats estimates
Oct 20 - Synchrony Financial's Q3 net earnings fall 17%
Oct 21 - Pressure on lower-income US households raises delinquency risks, Morningstar DBRS says
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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.)