Jefferson Capital Q2 revenue beats estimates on higher collections, deployments
Jefferson Capital Q2 revenue beats estimates on higher collections, deployments
Overview
Debt purchaser and account manager's Q2 revenue rose 16%, beating analyst expectations
Adjusted EPS for Q2 was $0.77; no analyst estimate provided for comparison
Revenue growth driven by strong prior deployments and Bluestem portfolio contribution
Outlook
Company says investment environment remains favorable, with focus on auto finance sector
Jefferson Capital highlights growing portfolio supply in auto finance due to credit quality headwinds
Result Drivers
STRONG DEPLOYMENTS - Co said revenue growth was primarily driven by strong deployments in prior periods
BLUESTEM PORTFOLIO - Bluestem portfolio purchase contributed $41 mln to U.S. collections and $11 mln to portfolio revenue
HIGHER SERVICING EXPENSES - Operating expenses rose due to increased collections, higher court costs from legal channel volume, and stock-based compensation
Company press release: ID:nGNX8KtR8q
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $177.50 mln | $169.66 mln (6 Analysts) |
Q2 Adjusted EPS |
| $0.77 |
|
Q2 EPS |
| $0.67 |
|
Q2 Adjusted Net Income |
| $47.30 mln |
|
Q2 Adjusted Pretax Profit |
| $59.30 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the corporate financial services peer group is "buy"
Wall Street's median 12-month price target for Jefferson Capital Inc is $28.00, about 32.7% above its August 12 closing price of $21.10
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago
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Aug 12 - Canada's AutoCanada Q2 revenue beats estimates on used retail vehicles
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.)
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