Q: Hi team,
Can you comment on Gsy earnings. What was expected for numbers? It seems revenue growth was much slower than normal here for these guys. Concerning?
Thanks ,
Shane
Can you comment on Gsy earnings. What was expected for numbers? It seems revenue growth was much slower than normal here for these guys. Concerning?
Thanks ,
Shane
5i Research Answer:
EPS was $3.53, missing estimates of $4.20; revenue of $391.9M missed estimates of $399.4M. EBITDA of $158.5M missed estimates by 7.7%. Certainly not a solid quarter in terms of expectations. Revenue rose 9.7%. EPS fell $0.30 from the prior year period. ROE slipped to 20.4% from 24.6%. GSY did add 43,500 new customers and added $565M in new capital. Guidance was maintained for the year, with GSY to focus on products, pricing and collections for the balance of the year. Charge off rate remains good, at 8.9%, down from 9.1%. The stock is very cheap at 8X earnings with a 3.7% yield, but we do not think investors will be too impressed here. The conference call has not yet occurred at the time of this answer.