Enova Q3 adjusted EPS beats estimates on healthy loan demand, stable credit

Enova International

Yesterday 21:24

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: ID:nPn6RLlcXa

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 

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)