Q: Comments on earnings , Seems to be an unappreciated company
5i Research Answer:
GSY had a record quarter. Charge-offs actually declined (8.8% vs 9.3%), despite higher rates and all the doom-and-gloom recession talk this year. EPS of $3.81 beat estimates of $3.46. Revenue of $321.7M beat by ~1%. EBITDA of $144M beat by 12%. Revenue rose 23%. EPS rose 35%. Originations were $722M, up 13%. Easyfinancial operating margins rose more than 4 points. GSY is back in growth mode, and this was a very solid quarter overall. The stock is up 20% YTD now, but is still only 9X earnings.