Digital finance platform OppFi Q2 adjusted EPS beats expectations

Overview

• OppFi Q2 revenue grows 12.8% yr/yr, setting company record

• Adjusted net income for Q2 rises 59%, setting company record

• Adjusted EPS for Q2 beats analyst expectations, per LSEG data

Outlook

• OppFi raises full-year revenue guidance to $578 mln-$605 mln

• Company increases full-year adjusted net income outlook to $125 mln-$130 mln

• Raises adjusted EPS forecast to $1.39 to $1.44 from $1.18 to $1.26

• OppFi attributes guidance raise to operational and credit improvements

Result Drivers

• MODEL 6 IMPACT - Model 6 contributed to origination growth while maintaining risk standards, per CEO Todd Schwartz

• AUTO-APPROVAL RATE - Record auto-approval percentage achieved, aiding in quarterly performance

• CREDIT PERFORMANCE - Decrease in net charge-off rate to 31.9% indicates improved credit performance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for OppFi Inc is $14.50, about 31.1% above its August 5 closing price of $9.99

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nPnbYqBdba