Latest news with #OPRT
Yahoo
3 days ago
- Business
- Yahoo
The 8.1% return this week takes Oportun Financial's (NASDAQ:OPRT) shareholders one-year gains to 97%
These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the Oportun Financial Corporation (NASDAQ:OPRT) share price is 97% higher than it was a year ago, much better than the market return of around 12% (not including dividends) in the same period. That's a solid performance by our standards! Unfortunately the longer term returns are not so good, with the stock falling 42% in the last three years. Since the stock has added US$61m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Oportun Financial isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings. Oportun Financial actually shrunk its revenue over the last year, with a reduction of 13%. Despite the lack of revenue growth, the stock has returned a solid 97% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving. The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image). We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. So we recommend checking out this free report showing consensus forecasts It's good to see that Oportun Financial has rewarded shareholders with a total shareholder return of 97% in the last twelve months. Notably the five-year annualised TSR loss of 8% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Oportun Financial better, we need to consider many other factors. Even so, be aware that Oportun Financial is showing 3 warning signs in our investment analysis , you should know about... There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
13-02-2025
- Business
- Yahoo
Oportun Financial Corp (OPRT) Q4 2024 Earnings Call Highlights: Strong Profitability and Growth ...
Revenue: $251 million in Q4, exceeding guidance by $1 million, but a 4% decline year over year. Net Income: $9 million in GAAP net income, a $51 million improvement year over year. Adjusted Net Income: $22 million, a $30 million improvement year over year. Return on Equity (ROE): GAAP ROE of 10%, adjusted ROE of 25% in Q4. Originations: $522 million in Q4, a 19% increase year over year. Net Charge-Off Rate: 11.7% in Q4, improved by 55 basis points year over year. Operating Expenses: $89 million in Q4, a 31% reduction year over year. Adjusted EBITDA: $41 million in Q4, a $31 million increase year over year. EPS: Diluted EPS of $0.20, adjusted EPS of $0.49 in Q4. Cash and Liquidity: Total cash of $215 million as of December 31, 2024, with $60 million unrestricted. Guidance for 2025: Adjusted EPS range of $1.10 to $1.30, reflecting a 53% to 81% increase over 2024. Warning! GuruFocus has detected 6 Warning Signs with OPRT. Release Date: February 12, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Oportun Financial Corp (NASDAQ:OPRT) returned to GAAP profitability in Q4 2024 with a net income of $9 million, marking a $51 million year-over-year improvement. The company achieved a 19% year-over-year growth in originations, with a 23% increase in the number of loans originated. Operating expenses were reduced by 31% year-over-year, reaching the lowest quarterly figure since Q2 2019. Improved credit performance was demonstrated by a net charge-off rate of 11.7%, the lowest level since Q3 2022. Oportun Financial Corp (NASDAQ:OPRT) increased its full-year 2025 adjusted EPS expectations by 7% at the midpoint, reflecting a 53% to 81% increase over 2024. Total revenue declined by 4% year-over-year due to a decrease in the average daily principal balance in the personal loans portfolio. Interest expense increased by $22 million year-over-year, primarily due to a one-time $17 million non-cash write-off related to refinancing. The sale of the credit card portfolio resulted in a $4 million reduction in total revenue for Q4 2024 and $34 million for the full year. The company anticipates a temporary increase in the net charge-off rate to 12.3% in Q1 2025. Despite improvements, the back book of loans still accounted for 18% of gross charge-offs, indicating ongoing challenges in managing legacy loans. Q: Can you explain the changes in the EPS guidance for 2025 and what factors are contributing to the updated share count expectation? A: Jonathan Coblentz, CFO, explained that the share count adjustment reflects updated projections based on future share awards and employee turnover. The EPS guidance increase is driven by improved revenue expectations, stable operating expenses, and better credit performance. The company has also seen success in its financings, with a recent securitization yielding below their target rate, contributing to the positive outlook. Q: As you focus on growth, which channels do you expect to drive this growth, and are all channels still active? A: Raul Vazquez, CEO, stated that all channels, including Medibank, branches, MoneyGram, and retail partners, are active and play a crucial role in originations. The company has seen significant strength in its retail and contact center channels, which have become more productive, contributing to healthy originations. Q: How do you anticipate the cost of capital to evolve over the year, considering the current rate environment and debt maturities? A: Jonathan Coblentz, CFO, noted that while new debt issuances are priced favorably, older debt with lower rates is running off. This may lead to a temporary increase in cost of funds before it decreases over the long term. The company plans to continue reducing its debt-to-equity ratio through GAAP profitability and prepayments of corporate debt. Q: What factors are driving the 10-15% growth expectation in originations for FY25? A: Raul Vazquez, CEO, explained that the growth is primarily driven by increased marketing efforts rather than opening up the credit box. The company plans to invest more in marketing to drive demand, leveraging the healthy top-of-funnel demand and maintaining its current credit standards. Q: How does Oportun view the competitive landscape in the personal loan market for FY25, given the current portfolio yield? A: Raul Vazquez, CEO, mentioned that the competitive landscape is rational, with pricing reflecting the higher cost of capital. The company believes this environment is constructive for growth, as competitors are not reducing pricing irrationally. 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
