Jefferson Capital slightly beats Q4 revenue estimates on strong deployments and high yields
Overview
US consumer debt purchaser's Q4 revenue rose 30%, slightly beating analyst expectations
Adjusted EPS for Q4 rose to $0.69
Company repurchased $58.9 mln of stock as part of follow-on equity offering
Outlook
Company expects Bluestem portfolio to be a meaningful contributor to 2026 results
Company has $224.8 mln in deployments locked in for the next twelve months
Result Drivers
PORTFOLIO PURCHASES - Collections growth was driven by contributions from recent portfolio acquisitions, including Bluestem and Conn’s
STRONG PRIOR DEPLOYMENTS - Revenue growth was primarily a result of strong deployments in prior periods and higher net yields
INCREASED OPERATING EXPENSES - Operating expenses rose mainly due to higher servicing costs, court costs from increased legal channel volume, and stock-based compensation
Company press release: ID:nGNX44TY3r
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Beat* | $154.8 mln | $153.76 mln (6 Analysts) |
Q4 Adjusted EPS |
| $0.69 |
|
Q4 EPS |
| $0.58 |
|
Q4 Adjusted Net Income |
| $44.70 mln |
|
Q4 Adjusted Pretax Profit |
| $51.10 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the corporate financial services peer group is "buy"
Wall Street's median 12-month price target for Jefferson Capital Inc is $27.00, about 29.9% above its March 11 closing price of $20.78
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago
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