PROG (NYSE:PRG) Issues Earnings Results, Misses Estimates By $0.03 EPS

PROG (NYSE:PRG) posted its earnings results on Wednesday. The fintech holding company reported $1.06 EPS for the quarter, missing the consensus estimate of $1.09 by ($0.03), Zacks reports. The business had revenue of $725.78 million during the quarter, compared to the consensus estimate of $735.28 million. PROG had a return on equity of 22.01% and a net margin of 5.46%.

Here are the key takeaways from PROG’s conference call:

• Consolidated growth remained strong: Third-quarter GMV increased 59% year over year, revenue rose approximately 26%, and non-GAAP EPS increased 21.8% to $1.06, with results within the company’s outlook ranges.
• Consumer pressure is weighing on Progressive Leasing. The company tightened approval standards again as inflation and higher fuel prices affected customer liquidity; leasing write-offs reached 8.3% of revenue, and full-year results are expected near the high end of the 6%-8% target range.
• Four and Purchasing Power continued to expand profitably. Four delivered its 12th consecutive quarter of triple-digit GMV growth, with GMV up 103% and a 30.6% adjusted EBITDA margin, while Purchasing Power GMV grew 12.3% and adjusted EBITDA margin improved sequentially to 9.8%.
• Full-year guidance was reduced to revenue of $3.015 billion-$3.05 billion, adjusted EBITDA of $345 million-$355 million, and non-GAAP EPS of $4.70-$4.85, reflecting expectations that customer financial pressures will persist through year-end.
• Management announced a planned $100 million accelerated share repurchase. The company expects an initial delivery of approximately 2.7 million shares, supported by debt reduction since the Purchasing Power acquisition and a net leverage ratio of 1.5 times.

PROG Trading Up 1.0%

Shares of PRG traded up $0.34 on Friday, reaching $33.82. 83,654 shares of the company’s stock were exchanged, compared to its average volume of 553,051. PROG has a 12 month low of $25.18 and a 12 month high of $47.73. The company has a current ratio of 3.81, a quick ratio of 2.29 and a debt-to-equity ratio of 1.07. The stock has a market capitalization of $1.35 billion, a P/E ratio of 9.12 and a beta of 1.78. The business has a 50 day moving average price of $34.10 and a two-hundred day moving average price of $35.61.

PROG Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 3rd. Stockholders of record on Tuesday, August 18th were given a dividend of $0.14 per share. The ex-dividend date was Tuesday, August 18th. This represents a $0.56 annualized dividend and a dividend yield of 1.7%. PROG’s payout ratio is currently 15.47%.

Wall Street Analyst Weigh In

PRG has been the subject of a number of analyst reports. Jefferies Financial Group reduced their price objective on shares of PROG from $60.00 to $50.00 and set a “buy” rating for the company in a research note on Wednesday, October 7th. TD Cowen reduced their price target on shares of PROG from $50.00 to $45.00 and set a “buy” rating for the company in a report on Thursday. B. Riley Financial upped their price objective on shares of PROG from $57.00 to $64.00 and gave the company a “buy” rating in a research report on Thursday, July 30th. Loop Capital upgraded PROG from a “hold” rating to a “buy” rating and set a $45.00 price target on the stock in a research note on Thursday, October 8th. Finally, Wall Street Zen lowered shares of PROG from a “strong-buy” rating to a “buy” rating in a report on Sunday, September 6th. Seven investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, PROG has an average rating of “Moderate Buy” and a consensus price target of $47.38.

Insider Transactions at PROG

In other PROG news, insider Michael King sold 1,070 shares of the stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $46.00, for a total value of $49,220.00. Following the sale, the insider directly owned 60,825 shares in the company, valued at approximately $2,797,950. This trade represents a 1.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CAO George M. Sewell sold 2,000 shares of PROG stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $45.53, for a total value of $91,060.00. Following the transaction, the chief accounting officer owned 28,385 shares in the company, valued at $1,292,369.05. This trade represents a 6.58% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 4,000 shares of company stock valued at $183,060. 3.72% of the stock is currently owned by company insiders.

PROG Company Profile

PROG Holdings, Inc is a financial technology company that provides consumer payment and lease-to-own solutions through its operating businesses. Its services are designed to help consumers acquire household goods and other merchandise through retail stores, e-commerce websites and other merchant channels.

The company’s primary business is Progressive Leasing, a lease-to-own provider that gives consumers an alternative to traditional credit when purchasing products such as furniture, appliances, electronics, mattresses and other household merchandise.