Q: Your thoughts on their earnings, thank you
5i Research Answer:
EPS of -$1.90 missed estimates of -$1.45; revenue of $406M matched estimates. Revenue rose 2% year over year. Net charge offs were 17.8%, double the prior year. Guidance calls for charge offs to be 16% to 17.5%. GSY has initiated a shareholders' rights plan, on concern of a possible takeover (this does not mean one is imminent, and these are very common). Originations fell 19% as the company is specifically targeting reductions in automotive and power sports. Certainly not great numbers here, but investors were likely prepared for the worst. We do not think there will be much interest in the stock until charge offs move much lower.