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Will Growth in Loans Benefit Enova (ENVA) in Q1 Earnings?
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Enova International (ENVA - Free Report) is scheduled to report first-quarter 2020 results on Apr 28, after market close. The company is expected to have witnessed year-over-year growth in revenues and earnings.
In the last reported quarter, the Chicago, IL-based online financial services provider’s results were affected by higher cost of revenues and expenses. However, continued rise in revenues and loan growth were the key highlights.
Enova boasts an impressive surprise history. It surpassed earnings estimates in three of the trailing four quarters, the average beat being 11.6%.
The company’s activities in the first quarter were inadequate to impress analysts. As a result, the Zacks Consensus Estimate for earnings of $1.41 has been stable over the past 30 days. Nonetheless, the figure indicates a surge of 21.6% from the year-ago reported number.
Moreover, the consensus estimate for revenues of $340.5 million suggests a rise of 16.2%.
Factors at Play
Growth in Loans: The company’s efforts to grow the loan portfolio by increasing awareness of its products are likely to have attracted new customers, and thus resulted in higher loan originations in the first quarter. Also, it is expected to have benefited from a decent consumer lending scenario.
Higher Revenues: Given the expectations of rise in loan, overall revenues are likely to have increased during the quarter. However, this is likely to have been partially offset by lower interest rates and the company’s planned exit from the U.K. market.
Notably, management expects total revenues of $328-$348 million for the first quarter.
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
According to our quantitative model, we cannot 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 #3.
ConnectOne Bancorp, Inc. (CNOB - Free Report) is likely to release earnings figures around Apr 30. The company, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +6.49%.
The Earnings ESP for Moody's Corporation (MCO - Free Report) is +0.18% and it carries a Zacks Rank of 3 currently. The company is expected to report quarterly numbers around Apr 30.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
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Will Growth in Loans Benefit Enova (ENVA) in Q1 Earnings?
Enova International (ENVA - Free Report) is scheduled to report first-quarter 2020 results on Apr 28, after market close. The company is expected to have witnessed year-over-year growth in revenues and earnings.
In the last reported quarter, the Chicago, IL-based online financial services provider’s results were affected by higher cost of revenues and expenses. However, continued rise in revenues and loan growth were the key highlights.
Enova boasts an impressive surprise history. It surpassed earnings estimates in three of the trailing four quarters, the average beat being 11.6%.
Enova International, Inc. Price and EPS Surprise
Enova International, Inc. price-eps-surprise | Enova International, Inc. Quote
The company’s activities in the first quarter were inadequate to impress analysts. As a result, the Zacks Consensus Estimate for earnings of $1.41 has been stable over the past 30 days. Nonetheless, the figure indicates a surge of 21.6% from the year-ago reported number.
Moreover, the consensus estimate for revenues of $340.5 million suggests a rise of 16.2%.
Factors at Play
Growth in Loans: The company’s efforts to grow the loan portfolio by increasing awareness of its products are likely to have attracted new customers, and thus resulted in higher loan originations in the first quarter. Also, it is expected to have benefited from a decent consumer lending scenario.
Higher Revenues: Given the expectations of rise in loan, overall revenues are likely to have increased during the quarter. However, this is likely to have been partially offset by lower interest rates and the company’s planned exit from the U.K. market.
Notably, management expects total revenues of $328-$348 million for the first quarter.
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
According to our quantitative model, we cannot 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 #3.
Stocks to Consider
First BanCorp. (FBP - Free Report) is slated to release results on Apr 30. The company has an Earnings ESP of +8.51% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ConnectOne Bancorp, Inc. (CNOB - Free Report) is likely to release earnings figures around Apr 30. The company, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +6.49%.
The Earnings ESP for Moody's Corporation (MCO - Free Report) is +0.18% and it carries a Zacks Rank of 3 currently. The company is expected to report quarterly numbers around Apr 30.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>