ECN missed analysts’ estimates for EPS of $0.02 in Q3 coming in at $0.00. Revenue also came in below forecasts of $55.18M at $45.7M while displaying negative year-over-year growth at -37.3%. Adjusted EBITDA was $24.1M, down from the same period in the previous year at $31.4M. An operating loss of ($6.0M) was recorded in Q3 and displays a year-over-year decline from $6.3M. Originations were also down in the quarter to $571.5M from $679.5M in Q3 of the prior year. On the call, ECN’s CEO mentioned that Skyline’s strategic investment closed in the quarter. ECN also announced a corporate simplification plan in Q2 which is on track, along with new funding arrangements in place at Triad and in the works for RV Marine. The goal of this plan is to improve operating efficiencies and resume growth in 2024. Q3 was weak for ECN and we are getting a bit frustrated with this name. We expected better consistency considering the management creed. We will see how ECN does now that rates seem to be peaking, but we need to see an improvement here.
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