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Enova (ENVA) to Report Q1 Earnings: What's in the Cards?

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Enova International (ENVA - Free Report) is scheduled to report first-quarter 2021 results on Apr 29, after market close. While earnings are expected to have improved year over year, revenues might have declined.

In the last reported quarter, the Chicago, IL-based online financial services provider’s results were adversely impacted by lower revenues and elevated expenses.

Enova has a decent earnings surprise history. It surpassed earnings estimates in three of the trailing four quarters and missed in one, the positive surprise being 113.2%, on average.

 

Enova International, Inc. Price and EPS Surprise

Enova International, Inc. Price and EPS Surprise

Enova International, Inc. price-eps-surprise | Enova International, Inc. Quote

 

The Zacks Consensus Estimate for earnings of $1.25 for the first quarter has been unchanged over the past 30 days. Also, the figure indicates a substantial jump from the year-ago reported number.

The consensus estimate for revenues of $266.4 million suggests a fall of 26.5%.

Factors at Play

Muted Loan Growth: Muted lending scenario during the quarter is likely to have dampened the company’s efforts to grow the loan portfolio by increasing awareness of its products. Thus, loan originations are likely to have been subdued in the first quarter.

Lower Revenues: Given the expectations of weak loan demand, overall revenues are likely to have decreased during the quarter. Also, the top line might have been affected by lower interest rates.

Rise in Expenses: Enova’s expenses are likely to have escalated due to its efforts to attract new customers, and marketing of new and existing products.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Enova this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #3 (Hold) or better for this to happen, which is not the case here as elaborated below.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Enova has an Earnings ESP of 0.00%.

Zacks Rank: The stock currently carries a Zacks Rank #2 (Buy).

Stocks to Consider

Here are a few finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

T. Rowe Price Group, Inc. (TROW - Free Report) is scheduled to release quarterly earnings on Apr 29. The company, which carries a Zacks Rank #2 currently, has an Earnings ESP of +0.57%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PennyMac Financial Services, Inc. (PFSI - Free Report) is likely to release earnings figures on May 6. The company, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +9.08%.

The Carlyle Group L.P. (CG - Free Report) is scheduled to announce quarterly results on Apr 29. The company has an Earnings ESP of +1.46% and currently holds a Zacks Rank of 3.

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