Latest news with #ENVA
Business Insider
17-05-2025
- Business
- Business Insider
Seaport Global Initiates a Buy Rating on Enova International (ENVA)
Enova International (ENVA – Research Report) received a Buy rating and a $124.00 price target from Seaport Global analyst Bill Ryan today. The company's shares closed yesterday at $97.93. Confident Investing Starts Here: Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter According to TipRanks, Ryan is a 3-star analyst with an average return of 5.6% and a 62.22% success rate. Ryan covers the Financial sector, focusing on stocks such as Federal Agricultural, Navient, and Enova International. The word on The Street in general, suggests a Strong Buy analyst consensus rating for Enova International with a $125.50 average price target. Based on Enova International's latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $745.54 million and a net profit of $72.95 million. In comparison, last year the company earned a revenue of $609.89 million and had a net profit of $48.43 million Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ENVA in relation to earlier this year. Earlier this month, Sean Rahilly, the GC & Secretary of ENVA sold 9,046.00 shares for a total of $859,822.30.
Yahoo
30-04-2025
- Business
- Yahoo
Enova International Inc (ENVA) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Revenue: $746 million in Q1 2025, up 22% year-over-year and 2% sequentially. Originations: Increased 26% year-over-year to $1.7 billion. Loan and Finance Receivables: Increased 20% year-over-year to $4.1 billion. Small Business Revenue: $305 million, up 29% year-over-year and 7% sequentially. Consumer Revenue: $431 million, up 18% year-over-year, down 1% sequentially. Adjusted EPS: Increased 56% year-over-year to $2.98 per diluted share. Net Charge-Off Ratio: Declined to 8.6% from 8.9% last quarter. Marketing Expense: 19% of total revenue, compared to 18% in Q1 2024. Liquidity: $1.1 billion, including $318 million in cash and marketable securities. Cost of Funds: Declined to 8.9%. Share Repurchases: 617,000 shares acquired at a cost of $63 million. Effective Tax Rate: 20%, down from 25% in Q1 2024. Warning! GuruFocus has detected 7 Warning Signs with ENVA. Release Date: April 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Enova International Inc (NYSE:ENVA) reported strong financial results for Q1 2025, with revenue increasing by 22% year-over-year to $746 million. The company achieved a 26% year-over-year growth in originations, reaching $1.7 billion, indicating strong demand for its products. Adjusted EPS increased by 56% year-over-year, driven by operating leverage, lower cost of funds, and efficient marketing. The company's diversified product offerings and online-only business model provide resilience and flexibility in various economic conditions. Enova International Inc (NYSE:ENVA) maintains a strong balance sheet with $1.1 billion in liquidity, providing financial flexibility for future growth and share repurchases. The impact of government tariffs on the US economy remains uncertain, posing potential risks to Enova International Inc (NYSE:ENVA)'s operations. Marketing expenses increased slightly to 19% of revenue, compared to 18% in Q1 2024, which could impact profitability if not managed effectively. The consumer net charge-off ratio, although improved sequentially, remains slightly higher than the first quarter of 2024 due to mix shifts in recent originations. The company's reliance on non-GAAP measures may obscure the true financial performance and could lead to discrepancies in financial reporting. Potential volatility in the stock market and share prices of financial companies, including Enova International Inc (NYSE:ENVA), could affect investor confidence and share repurchase strategies. Q: Are small businesses stocking up on inventory due to tariffs, affecting loan demand? A: David Fisher, CEO: There's no indication of small businesses stocking up on inventory due to tariffs. Demand follows typical seasonal patterns, and we didn't see any spike in application volumes when tariff discussions intensified. Q: How quickly can you gauge shifts in consumer and SMB loan behavior? A: David Fisher, CEO: Most loans have weekly or bi-weekly payment frequencies, allowing us to quickly detect changes in performance. Both consumer and SMB portfolios have short durations, around six months on average. Q: How should we think about second-quarter interest expense given the decline in funding costs? A: Steven Cunningham, CFO: We don't expect significant changes in interest expense for the second quarter. The cost of funds should remain steady as a percentage of revenue. Q: How are fair value premiums and credit performance expected to perform in the current environment? A: Steven Cunningham, CFO: Fair value premiums are stable, reflecting consistent credit performance. We have quick loss emergence, allowing us to react swiftly to changes, minimizing volatility in fair value premiums. Q: What impact do new customers have on revenue margins and credit performance? A: Steven Cunningham, CFO: New customers typically have higher charge-off rates initially but offer strong lifetime economics. The impact of new customers on revenue margins should moderate by the second half of the year. Q: How do you expect the small business portfolio to perform in a recession compared to consumer portfolios? A: David Fisher, CEO: In past recessions, small business portfolios performed similarly to consumer portfolios. Our small businesses are diversified and have short duration terms, which should help maintain stability. Q: Is the increase in new customers a result of a favorable competitive environment? A: David Fisher, CEO: Yes, the growth in new customers is due to a conducive competitive environment and product enhancements. We haven't seen new competitive threats recently. Q: How are you approaching share repurchases given current market conditions? A: Steven Cunningham, CFO: We are interested in repurchasing shares at current levels to support valuation. If market conditions remain consistent, we plan to use most of our buyback capacity this quarter. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
05-02-2025
- Business
- Yahoo
Enova International (ENVA) Surpasses Q4 Earnings Estimates
Enova International (ENVA) came out with quarterly earnings of $2.61 per share, beating the Zacks Consensus Estimate of $2.33 per share. This compares to earnings of $1.83 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 12.02%. A quarter ago, it was expected that this online financial services company would post earnings of $2.30 per share when it actually produced earnings of $2.45, delivering a surprise of 6.52%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Enova International , which belongs to the Zacks Financial - Consumer Loans industry, posted revenues of $729.55 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.29%. This compares to year-ago revenues of $583.59 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Enova International shares have added about 15.6% since the beginning of the year versus the S&P 500's gain of 1.9%. While Enova International has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Enova International: unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $2.18 on $743.73 million in revenues for the coming quarter and $10.78 on $3.16 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Consumer Loans is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Mr Cooper (COOP), has yet to report results for the quarter ended December 2024. The results are expected to be released on February 12. This reinsurance company is expected to post quarterly earnings of $2.58 per share in its upcoming report, which represents a year-over-year change of +50.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Mr Cooper's revenues are expected to be $585.9 million, up 45% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Enova International, Inc. (ENVA) : Free Stock Analysis Report MR. COOPER GROUP INC (COOP) : Free Stock Analysis Report To read this article on click here. Zacks Investment Research Sign in to access your portfolio
Yahoo
05-02-2025
- Business
- Yahoo
Enova International Inc (ENVA) Q4 2024 Earnings Call Highlights: Record Revenue and Strategic ...
Release Date: February 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Enova International Inc (NYSE:ENVA) reported over 20% growth in revenue, originations, adjusted EBITDA, and adjusted EPS compared to 2023. The company achieved record levels of revenue, originations, and EPS for the year 2024. Fourth quarter originations increased 20% year over year and 6% sequentially to $1.7 billion. Small business products represented 62% of the total portfolio, indicating strong demand in this segment. The company has a strong balance sheet with $1.3 billion of liquidity, including $326 million in cash and marketable securities. Origination growth moderated from the 25% plus growth seen in the first nine months of the year. The company is cautious about potential changes in the macroeconomic environment that could impact future performance. Marketing expenses as a percentage of revenue are expected to range in the upper 10s for the first quarter of 2025. The company faces potential regulatory challenges, such as the small business disclosure rule and payment provisions of the small dollar rule. Despite strong performance, the company acknowledges that its stock is still undervalued, indicating market skepticism. Warning! GuruFocus has detected 8 Warning Signs with ENVA. Q: Can you talk about the competitive environment in both consumer and small business lending? Are there any changes, and how are you seeing it? A: David Fisher, CEO: We haven't seen any negative impacts from competition. Our strong origination growth in Q4 and a strong start to Q1 indicate that competition hasn't been a significant issue. While some lenders may come and go, their impact tends to be small and fleeting. We haven't seen a sustained competitive push in a long time. Q: Are you seeing any signs of a healthier consumer compared to a year ago, or is it more about having a better loan book due to tightened credit? A: David Fisher, CEO: We see our target consumers as strong, benefiting from a robust labor market and rising wages. We were slightly conservative on risk a year ago and added some risk during the year. We feel good about the current portfolio and the health of non-prime consumers, which supports our ability to originate additional loans. Q: Regarding the mix of new and recurring customers in both portfolios, has there been any shift over the past year? A: Steve Cunningham, CFO: The mix has been stable, with around 40% of originations from new customers for both consumer and small business portfolios. We continue to focus on attracting new customers while serving returning ones, and we don't anticipate significant changes in this mix. Q: Can you provide insights into the cost of capital savings expected for 2025, and the sensitivity to interest rate changes? A: Steve Cunningham, CFO: Assuming no further rate cuts, we expect a 50 basis point reduction in our cost of funds for 2025. Our guidance assumes one rate cut. For every 25 basis point reduction in SOFR, we anticipate a $0.10 increase in EPS over a year. Q: What is the outlook for expenses and efficiency improvements in 2025? A: Steve Cunningham, CFO: We expect G&A costs as a percentage of revenue to continue scaling down. Marketing expenses will remain around 20% of revenue, with potential for slight reductions over time. We aim to maintain efficiency while supporting growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
