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For the first quarter, the company expects revenues of approximately $125 million. The Zacks Consensus Estimate is currently pegged at $124.8 million, suggesting growth of 21.3% year over year.
The consensus mark for earnings is pegged at a loss of 38 cents per share, suggesting a significant improvement from the year-ago quarter’s loss of 47 cents.
UPST’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same on one occasion, the average surprise being 29.8%.
Let’s see how things have shaped up for the upcoming announcement.
Upstart Holdings’ first-quarter performance is likely to have benefited from its strategy to operate as a multiproduct company. Innovative product launches like the Upstart Macro Index and features like Parallel Timing Curve Calibration to promote better data-driven decisions among lenders are likely to have favored the company’s performance. Its investments in generative AI and machine learning to enhance its product portfolio are expected to have improved its performance as well.
UPST’s expertise in offering unsecured loans, particularly when traditional banks refrain from lending during a macroeconomic crisis, along with its ongoing efforts to automate the unsecured loan process, are expected to have contributed positively in the to-be-reported quarter.
During first-quarter 2024, the company introduced Recognized Customer Personalization, a new feature of the Upstart Referral Network. It allows banks and credit unions to offer personalized loan options to their existing customers seeking loans. This enhancement is expected to have boosted UPST's performance.
Upstart Holdings is expected to have gained from multiple partnerships with banks and credit unions, including PriorityONE, Kaua'i Federal, Liberty Savings and Maine Savings.
However, challenges from the softening lending market due to heightened consumer risk caused by numerous bank failures and dislocation of capital markets may have affected the top line. The degradation in the macro environment caused by worldwide geopolitical tension is expected to have hurt the company’s performance in the to-be-reported quarter.
Additionally, the deterioration of the macroeconomic landscape, coupled with the growing conservatism among lenders, is likely to have resulted in heightened loan pricing within the company's platform and decreased approval rates for loan applicants. Consequently, this is expected to have diminished transaction volume and affected the company's revenue stream.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Upstart Holdings this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
UPST currently has an Earnings ESP of -1.56% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Arista Networks (ANET - Free Report) , Docebo (DCBO - Free Report) and NVIDIA (NVDA - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
The Zacks Consensus Estimate for Arista Networks’ first-quarter earnings has moved a penny upward to $1.74 per share over the past 30 days, indicating a year-over-year increase of 21.7%. The consensus mark for revenues is pegged at $1.55 billion, suggesting a 14.8% increase from the year-ago quarter. Shares of ANET have gained 16.5% year to date.
Docebo has an Earnings ESP of +8.00% and a Zacks Rank #3 at present. It is set to report its first-quarter 2024 results on May 9.
The Zacks Consensus Estimate for Docebo’s first-quarter earnings has moved a penny upward to 17 cents per share over the past 30 days, indicating a year-over-year increase of 89%. The consensus mark for revenues is pinned at $51.2 million, suggesting a 23.4% increase from the year-ago quarter. Shares of DCBO have lost 5.7% year to date.
NVIDIA has an Earnings ESP of +2.50% and a Zacks Rank #2 at present. It is set to report its first-quarter fiscal 2025 results on May 22.
The Zacks Consensus Estimate for NVIDIA’s first-quarter earnings has moved a penny upward to $5.49 per share over the past 30 days, indicating a year-over-year increase of 403.7%. The consensus mark for revenues is pegged at $24.17 billion, suggesting a 236% increase from the year-ago quarter. Shares of NVDA have surged 79.3% year to date.
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Upstart Holdings (UPST) to Report Q1 Earnings: What's in Store?
Upstart Holdings (UPST - Free Report) is slated to report first-quarter 2024 results on May 7, after market close.
For the first quarter, the company expects revenues of approximately $125 million. The Zacks Consensus Estimate is currently pegged at $124.8 million, suggesting growth of 21.3% year over year.
The consensus mark for earnings is pegged at a loss of 38 cents per share, suggesting a significant improvement from the year-ago quarter’s loss of 47 cents.
UPST’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same on one occasion, the average surprise being 29.8%.
Let’s see how things have shaped up for the upcoming announcement.
Upstart Holdings, Inc. Price and EPS Surprise
Upstart Holdings, Inc. price-eps-surprise | Upstart Holdings, Inc. Quote
Factors to Consider
Upstart Holdings’ first-quarter performance is likely to have benefited from its strategy to operate as a multiproduct company. Innovative product launches like the Upstart Macro Index and features like Parallel Timing Curve Calibration to promote better data-driven decisions among lenders are likely to have favored the company’s performance. Its investments in generative AI and machine learning to enhance its product portfolio are expected to have improved its performance as well.
UPST’s expertise in offering unsecured loans, particularly when traditional banks refrain from lending during a macroeconomic crisis, along with its ongoing efforts to automate the unsecured loan process, are expected to have contributed positively in the to-be-reported quarter.
During first-quarter 2024, the company introduced Recognized Customer Personalization, a new feature of the Upstart Referral Network. It allows banks and credit unions to offer personalized loan options to their existing customers seeking loans. This enhancement is expected to have boosted UPST's performance.
Upstart Holdings is expected to have gained from multiple partnerships with banks and credit unions, including PriorityONE, Kaua'i Federal, Liberty Savings and Maine Savings.
However, challenges from the softening lending market due to heightened consumer risk caused by numerous bank failures and dislocation of capital markets may have affected the top line. The degradation in the macro environment caused by worldwide geopolitical tension is expected to have hurt the company’s performance in the to-be-reported quarter.
Additionally, the deterioration of the macroeconomic landscape, coupled with the growing conservatism among lenders, is likely to have resulted in heightened loan pricing within the company's platform and decreased approval rates for loan applicants. Consequently, this is expected to have diminished transaction volume and affected the company's revenue stream.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Upstart Holdings this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
UPST currently has an Earnings ESP of -1.56% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Arista Networks (ANET - Free Report) , Docebo (DCBO - Free Report) and NVIDIA (NVDA - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Arista Networks has an Earnings ESP of +3.76% and a Zacks Rank #2 at present. It is set to report its first-quarter 2024 results on May 7. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks’ first-quarter earnings has moved a penny upward to $1.74 per share over the past 30 days, indicating a year-over-year increase of 21.7%. The consensus mark for revenues is pegged at $1.55 billion, suggesting a 14.8% increase from the year-ago quarter. Shares of ANET have gained 16.5% year to date.
Docebo has an Earnings ESP of +8.00% and a Zacks Rank #3 at present. It is set to report its first-quarter 2024 results on May 9.
The Zacks Consensus Estimate for Docebo’s first-quarter earnings has moved a penny upward to 17 cents per share over the past 30 days, indicating a year-over-year increase of 89%. The consensus mark for revenues is pinned at $51.2 million, suggesting a 23.4% increase from the year-ago quarter. Shares of DCBO have lost 5.7% year to date.
NVIDIA has an Earnings ESP of +2.50% and a Zacks Rank #2 at present. It is set to report its first-quarter fiscal 2025 results on May 22.
The Zacks Consensus Estimate for NVIDIA’s first-quarter earnings has moved a penny upward to $5.49 per share over the past 30 days, indicating a year-over-year increase of 403.7%. The consensus mark for revenues is pegged at $24.17 billion, suggesting a 236% increase from the year-ago quarter. Shares of NVDA have surged 79.3% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar