Lender Goeasy's Q2 revenue up 11%
Overview
Goeasy Q2 revenue rises 11% yr/yr to C$418 mln
Adjusted EPS of C$4.11 beats analyst expectations
Net charge-off rate improves to 8.8%, reflecting better credit practices
Outlook
Goeasy reiterates full-year 2025 forecast provided in February
Goeasy sees growth potential in Canada's C$230 bln non-prime market
Result Drivers
LOAN ORIGINATIONS - Record C$904 mln in loan originations, up 9% from prior yr, driven by a 23% increase in credit applications
LOAN PORTFOLIO GROWTH - Loan portfolio grew to C$5.10 bln, a 23% increase from prior yr, exceeding co's outlook range
YIELD DECLINE - Total annualized yield on average consumer loans receivable decreased by 310 bps due to growth of secured loan products at lower interest rates and new interest rate cap
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| C$418 mln |
|
Q2 Adjusted EPS | Beat | C$4.11 | C$4.06 (8 Analysts) |
Q2 EPS |
| C$5.19 |
|
Q2 Net Income |
| C$86.50 mln |
|
Q2 Operating Income |
| C$161 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy"
Wall Street's median 12-month price target for goeasy Ltd is C$215.00, about 13.3% above its August 5 closing price of C$186.48
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago
Press Release: ID:nCNWyCrTra
