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Enova (ENVA) to Report Q2 Earnings: What's in the Offing?
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Enova International (ENVA - Free Report) is scheduled to report second-quarter 2022 results on Jul 25, after market close. The company’s revenues and earnings are expected to have improved year over year.
In the last reported quarter, the online financial services provider’s better-than-expected results were driven by higher revenues and lower expenses.
Enova has an impressive earnings surprise history. It surpassed earnings estimates in the trailing four quarters, the surprise being 8%, on average.
The decent job market and borrowers adapting to inflation indicate a resurgence in consumer borrowing in the second quarter. Moreover, Fed data indicates decent consumer loan growth in second-quarter 2023.
Amid these, Enova’s market-leading position as a U.S. non-prime lender and its diversified product offerings across underserved nonprime consumers and small businesses are likely to have driven its loan originations in the second quarter. Notably, the first quarter was the sixth consecutive quarter of $1 billion or more of originations. This trend is expected to have continued in the second quarter as well.
The ongoing transition toward installment loans, and NetCredit and the recent bank partnership are expected to have driven revenue growth.
Given the expectations of improvement in loan demand and its diversified product offerings, overall revenues are likely to have improved in the quarter. The consensus estimate for revenues of $485.5 million suggests a year-over-year rise of 19%. Management expects revenues to be sequentially flat in the second quarter.
However, the company is expected to have recorded rising interest expenses due to higher benchmark rates. Also, Enova’s expenses are likely to have escalated due to its efforts to attract customers, and multichannel marketing strategy of new and existing products. This is expected to have impeded bottom-line growth.
The Zacks Consensus Estimate for earnings of $1.69 for the second quarter has been unchanged over the past 30 days. The figure indicates a 3% rise from the year-ago reported number. Management expects earnings to be flat to slightly higher year over year.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Enova this time around. This is because a company needs to have 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 company currently sports a Zacks Rank #1 (Strong Buy).
Stocks to Consider
First Citizens BancShares, Inc. (FCNCA - Free Report) and Ares Management Corporation (ARES - Free Report) are a couple of stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.
The Earnings ESP for FCNCA is +3.21% and the stock currently carries a Zacks Rank #3. It is slated to report second-quarter 2023 results on Aug 3.
The Zacks Consensus Estimate for FCNCA’s second-quarter earnings has moved 4.3% south over the past 30 days.
Image: Bigstock
Enova (ENVA) to Report Q2 Earnings: What's in the Offing?
Enova International (ENVA - Free Report) is scheduled to report second-quarter 2022 results on Jul 25, after market close. The company’s revenues and earnings are expected to have improved year over year.
In the last reported quarter, the online financial services provider’s better-than-expected results were driven by higher revenues and lower expenses.
Enova has an impressive earnings surprise history. It surpassed earnings estimates in the trailing four quarters, the surprise being 8%, on average.
Enova International, Inc. Price and EPS Surprise
Enova International, Inc. price-eps-surprise | Enova International, Inc. Quote
Factors at Play
The decent job market and borrowers adapting to inflation indicate a resurgence in consumer borrowing in the second quarter. Moreover, Fed data indicates decent consumer loan growth in second-quarter 2023.
Amid these, Enova’s market-leading position as a U.S. non-prime lender and its diversified product offerings across underserved nonprime consumers and small businesses are likely to have driven its loan originations in the second quarter. Notably, the first quarter was the sixth consecutive quarter of $1 billion or more of originations. This trend is expected to have continued in the second quarter as well.
The ongoing transition toward installment loans, and NetCredit and the recent bank partnership are expected to have driven revenue growth.
Given the expectations of improvement in loan demand and its diversified product offerings, overall revenues are likely to have improved in the quarter. The consensus estimate for revenues of $485.5 million suggests a year-over-year rise of 19%. Management expects revenues to be sequentially flat in the second quarter.
However, the company is expected to have recorded rising interest expenses due to higher benchmark rates. Also, Enova’s expenses are likely to have escalated due to its efforts to attract customers, and multichannel marketing strategy of new and existing products. This is expected to have impeded bottom-line growth.
The Zacks Consensus Estimate for earnings of $1.69 for the second quarter has been unchanged over the past 30 days. The figure indicates a 3% rise from the year-ago reported number. Management expects earnings to be flat to slightly higher year over year.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Enova this time around. This is because a company needs to have 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 company currently sports a Zacks Rank #1 (Strong Buy).
Stocks to Consider
First Citizens BancShares, Inc. (FCNCA - Free Report) and Ares Management Corporation (ARES - Free Report) are a couple of stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases.
The Earnings ESP for FCNCA is +3.21% and the stock currently carries a Zacks Rank #3. It is slated to report second-quarter 2023 results on Aug 3.
The Zacks Consensus Estimate for FCNCA’s second-quarter earnings has moved 4.3% south over the past 30 days.
ARES currently has an Earnings ESP of +0.20% and a Zacks Rank #3. It is scheduled to release second-quarter 2023 results on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ARES’s second-quarter earnings has moved 2.3% south over the past month.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.