Enova International (NYSE:ENVA) Posts Quarterly Earnings Results

Enova International (NYSE:ENVA) announced its quarterly earnings data on Thursday. The credit services provider reported $4.48 earnings per share for the quarter, topping analysts’ consensus estimates of $4.42 by $0.06, FiscalAI reports. Enova International had a net margin of 10.31% and a return on equity of 26.66%. The firm had revenue of $1.01 billion during the quarter, compared to analyst estimates of $1 billion.

Here are the key takeaways from Enova International’s conference call:

• Enova reported strong third-quarter growth, with originations up 31% year over year to $2.6 billion, revenue up 26% to more than $1 billion, and adjusted EPS up 33% to $4.48.
• Credit performance remained stable to improving: consolidated net charge-offs fell to 8.1% from 8.5% a year earlier, while SMB charge-offs held at 4.8% and the company said consumer demand and small-business confidence remained resilient.
• Management expects fourth-quarter revenue to rise about 25% year over year and adjusted EPS to increase 30%–35%, supported by continued portfolio growth, operating leverage, and stable funding costs.
• Enova increased share repurchases to $46 million in the quarter and said it would remain opportunistic, while ending September with $1.3 billion of liquidity and additional debt-facility capacity.
• Management expects consolidated net revenue margin to moderate to 55%–60% in the fourth quarter, with consumer margins trending toward a more typical 50% as recent vintages season; third-quarter marketing expense also rose to 23% of revenue.

Enova International Stock Down 2.2%

NYSE ENVA traded down $4.03 during trading on Thursday, reaching $176.02. The company’s stock had a trading volume of 440,130 shares, compared to its average volume of 322,002. The company has a current ratio of 18.42, a quick ratio of 18.42 and a debt-to-equity ratio of 3.35. The stock has a market capitalization of $4.38 billion, a PE ratio of 13.05 and a beta of 1.28. Enova International has a 1-year low of $111.93 and a 1-year high of $267.45. The business has a 50-day moving average price of $204.23 and a 200-day moving average price of $199.09.

Analysts Set New Price Targets

A number of research firms have recently issued reports on ENVA. Wall Street Zen lowered shares of Enova International from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 22nd. Citigroup reissued a “market outperform” rating on shares of Enova International in a research note on Tuesday, September 15th. TD Cowen lowered their price target on shares of Enova International from $257.00 to $220.00 and set a “buy” rating on the stock in a report on Tuesday, September 15th. Stephens dropped their price target on shares of Enova International from $275.00 to $205.00 and set an “overweight” rating on the stock in a research note on Thursday, September 17th. Finally, Zacks Research lowered Enova International from a “strong-buy” rating to a “hold” rating in a report on Wednesday, September 16th. Eight investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, Enova International currently has a consensus rating of “Moderate Buy” and a consensus price target of $230.83.

Insider Buying and Selling at Enova International

In related news, Chairman David Fisher sold 20,750 shares of Enova International stock in a transaction on Thursday, September 17th. The shares were sold at an average price of $178.24, for a total value of $3,698,480.00. Following the completion of the sale, the chairman owned 306,444 shares of the company’s stock, valued at approximately $54,620,578.56. The trade was a 6.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In the last quarter, insiders have sold 39,319 shares of company stock worth $8,185,473. 8.40% of the stock is currently owned by company insiders.

About Enova International

Enova International, Inc is a financial technology company that provides online financial services to consumers and small businesses. Its offerings include consumer installment loans and lines of credit, as well as small-business financing products designed to provide access to working capital. The company serves customers who may have limited access to traditional bank credit and uses data-driven underwriting and technology-enabled platforms in its lending operations.

Enova markets its products through brands including CashNetUSA and NetCredit, which provide consumer financial services, and OnDeck, which focuses on lending to small businesses.