Have you been eager to see how Santander Consumer USA Holdings Inc. (SC - Free Report) performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this Texas-based technology-driven consumer finance company’s earnings release this morning:
An Earnings Beat
Santander Consumer came out with earnings per share of 70 cents, beating the Zacks Consensus Estimate of 62 cents. Results exclude impact of decreased tax rate in the quarter. Elevated total finance and other interest income were recorded.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Santander Consumer remained stable prior to the earnings release. The Zacks Consensus Estimate has remained unchanged over the last 7 days.
Also, Santander Consumer has a mixed record of earnings surprise history. The company had an average negative beat of 10.54% in the trailing four quarters.
Revenue Came In Higher Than Expected
Santander Consumer posted revenues of $1.69 billion, which was above the Zacks Consensus Estimate of $1.55 billion. Further, it compared favorably with the year-ago number of $1.68 billion.
Key Stats to Note:
- Total auto originations: $5.5 billion
- Net interest margin: 11.3%
- Net charge-off ratio: 7.5%
- Return on average equity: 19.1%
- Return on average assets: 2.7%
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Santander Consumer. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
How the Market Reacted So Far
Following the earnings release, Santander Consumer shares were up more than 2% in the pre-trading session. This is in line to what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this Santander Consumer earnings report!
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