Have you been eager to see how Santander Consumer USA Holdings Inc. performed in Q1 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 67 cents, beating the Zacks Consensus Estimate of 40 cents.
Lower expenses and credit costs supported the results. However, decline in revenues was a headwind.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Santander Consumer reflect a bearish stance prior to the earnings release. The Zacks Consensus Estimate declined 2.4% over the last 30 days.
Santander Consumer has a decent earnings surprise history. The company had an average positive beat of 12.8% in the trailing four quarters.
Revenues
Santander Consumer posted revenues of $1.05 billion, which declined 10.1% year over year. The Zacks Consensus Estimate for revenues was $1.61 billion.
Key Stats to Note:
- Total auto originations during the quarter: $4.3 billion, up 18% year over year
- Net interest margin: 10.3%
- Operating expenses: $287.9 million, down 6% year over year
- Provision for credit losses: $459 million, down 28% from the year-ago quarter
- Return on average equity: 14.7%
- Return on average assets: 2.4%
- Net charge-off rate: 8.3%, down from 8.8% in the prior year quarter
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #5 (Strong Sell) 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.)
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Santander Consumer (SC) Q1 Earnings Beat on Lower Expenses
Have you been eager to see how Santander Consumer USA Holdings Inc. performed in Q1 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 67 cents, beating the Zacks Consensus Estimate of 40 cents.
Lower expenses and credit costs supported the results. However, decline in revenues was a headwind.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Santander Consumer reflect a bearish stance prior to the earnings release. The Zacks Consensus Estimate declined 2.4% over the last 30 days.
Santander Consumer has a decent earnings surprise history. The company had an average positive beat of 12.8% in the trailing four quarters.
Santander Consumer USA Holdings Inc. Price and EPS Surprise
Santander Consumer USA Holdings Inc. Price and EPS Surprise | Santander Consumer USA Holdings Inc. Quote
Revenues
Santander Consumer posted revenues of $1.05 billion, which declined 10.1% year over year. The Zacks Consensus Estimate for revenues was $1.61 billion.
Key Stats to Note:
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #5 (Strong Sell) 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.)
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>