Enova International (NYSE:ENVA) Announces Earnings Results, Beats Expectations By $0.06 EPS

Enova International (NYSE:ENVA) posted its earnings results on Thursday. The credit services provider reported $4.48 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.42 by $0.06, FiscalAI reports. The business had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $1 billion. Enova International had a return on equity of 28.01% and a net margin of 10.47%. Enova International’s revenue for the quarter was up 25.7% compared to the same quarter last year. During the same period in the prior year, the business earned $3.36 EPS.

Here are the key takeaways from Enova International’s conference call:

• Enova reported strong third-quarter growth, with originations up 31% year over year to $2.6 billion, revenue up 26% to more than $1 billion, and adjusted EPS up 33% to $4.48.
• Credit performance remained stable to improving: consolidated net charge-offs fell to 8.1% from 8.5% a year earlier, while SMB charge-offs held at 4.8% and the company said consumer demand and small-business confidence remained resilient.
• Management expects fourth-quarter revenue to rise about 25% year over year and adjusted EPS to increase 30%–35%, supported by continued portfolio growth, operating leverage, and stable funding costs.
• Enova increased share repurchases to $46 million in the quarter and said it would remain opportunistic, while ending September with $1.3 billion of liquidity and additional debt-facility capacity.
• Management expects consolidated net revenue margin to moderate to 55%–60% in the fourth quarter, with consumer margins trending toward a more typical 50% as recent vintages season; third-quarter marketing expense also rose to 23% of revenue.

Enova International Stock Down 6.6%

NYSE ENVA traded down $11.73 during trading on Friday, hitting $165.04. The stock had a trading volume of 656,441 shares, compared to its average volume of 328,536. The company has a market capitalization of $4.11 billion, a PE ratio of 11.37 and a beta of 1.28. The company’s 50-day moving average price is $200.48 and its two-hundred day moving average price is $199.12. The company has a debt-to-equity ratio of 3.35, a quick ratio of 18.42 and a current ratio of 18.42. Enova International has a 12 month low of $115.06 and a 12 month high of $267.45.

Insiders Place Their Bets

In other news, Chairman David Fisher sold 20,750 shares of Enova International stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $178.24, for a total value of $3,698,480.00. Following the sale, the chairman directly owned 306,444 shares in the company, valued at $54,620,578.56. This trade represents a 6.34% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Over the last three months, insiders sold 39,319 shares of company stock worth $8,185,473. Corporate insiders own 8.40% of the company’s stock.

Key Stories Impacting Enova International

Here are the key news stories impacting Enova International this week:

• Positive Sentiment: Analysts raised their targets and maintained bullish ratings. TD Cowen increased its target to $224 and assigned a “buy” rating; Citizens JMP raised its target to $220 with a “market outperform” rating; and Stephens lifted its target to $225 with an “overweight” rating. These targets imply roughly 33%–36% potential upside from the referenced share price. TD Cowen recommendation
• Positive Sentiment: Third-quarter results exceeded expectations. Enova reported adjusted EPS of $4.48, above the $4.42 consensus estimate, while revenue reached approximately $1.01 billion versus expectations of $1 billion. Revenue rose 25.7% year over year, and adjusted EPS increased 33% from $3.36 a year earlier. Enova third-quarter results
• Positive Sentiment: Operating growth remained strong. Loan originations climbed 31%, the loan book reached a record level, and the quarter marked the first time quarterly revenue surpassed $1 billion. Management attributed the performance to broad strength across its online-lending portfolio. Enova surpasses $1 billion in quarterly revenue
• Negative Sentiment: The termination of the Grasshopper Bank deal may be weighing on sentiment. The ended bank charter transaction removes a potential strategic benefit and may have prompted investors to reassess Enova’s future banking strategy. Blue Tower analysis of Enova’s Grasshopper Bank deal

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on ENVA shares. Zacks Research cut shares of Enova International from a “strong-buy” rating to a “hold” rating in a report on Wednesday, September 16th. Citizens Jmp raised their price objective on shares of Enova International from $215.00 to $220.00 and gave the stock a “market outperform” rating in a report on Friday. TD Cowen boosted their price objective on shares of Enova International from $220.00 to $224.00 and gave the company a “buy” rating in a research report on Friday. Jefferies Financial Group cut their price objective on shares of Enova International from $300.00 to $275.00 and set a “buy” rating on the stock in a research report on Wednesday, October 7th. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Enova International in a research note on Friday. Eight research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat.com, Enova International currently has a consensus rating of “Moderate Buy” and an average target price of $235.67.

Enova International Company Profile

Enova International, Inc is a financial technology company that provides online financial services to consumers and small businesses. Its offerings include consumer installment loans and lines of credit, as well as small-business financing products designed to provide access to working capital. The company serves customers who may have limited access to traditional bank credit and uses data-driven underwriting and technology-enabled platforms in its lending operations.

Enova markets its products through brands including CashNetUSA and NetCredit, which provide consumer financial services, and OnDeck, which focuses on lending to small businesses.