Atlanticus Holdings Corporation (ATLC) came out with quarterly earnings of $1.49 per share, beating the Zacks Consensus Estimate of $1.33 per share. This compares to earnings of $1.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.03%. A quarter ago, it was expected that this company would post earnings of $1.21 per share when it actually produced earnings of $1.42, delivering a surprise of 17.36%.Over the last four quarte ...

First Quarter 2025 net margin growth of 26.4% over prior year, with 3.8 million accounts served (1) ATLANTA, May 08, 2025 (GLOBE NEWSWIRE) -- Atlanticus Holdings Corporation (NASDAQ: ATLC) (Atlanticus, the Company, we, our or us), a financial technology company that enables its bank, retail and healthcare partners to offer more inclusive financial services to millions of everyday Americans, today announced its financial results for the first quarter ended March 31, 2025. An accompanying earnings presentatio ...

Financial Performance - Total operating revenue and other income for Q1 2025 was $344.873 million, an increase of $54.699 million from $290.174 million in Q1 2024, representing an 18.9% growth[170]. - Net income attributable to controlling interests for Q1 2025 was $31.520 million, up from $26.170 million in Q1 2024, reflecting an increase of $5.350 million or 20.4%[170]. - The net margin for Q1 2025 was $118.223 million, an increase of $24.695 million from $93.528 million in Q1 2024, reflecting a 26.4% increase[170]. - The company reported total operating expenses of $77.355 million in Q1 2025, an increase of $16.648 million from $60.707 million in Q1 2024, representing a 27.4% rise[170]. - The total managed yield ratio for Q1 2025 was 38.5%, down from 40.0% in Q4 2024[207]. - The combined principal net charge-off ratio for Q1 2025 was 24.1%, an increase from 22.0% in Q4 2024[207]. - The average managed receivables for Q1 2025 were $2,715.5 million, slightly up from $2,689.4 million in Q4 2024[207]. - The interest expense ratio for Q1 2025 was 6.9%, compared to 6.5% in Q4 2024[207]. - The net interest margin ratio for Q1 2025 was 7.5%, down from 11.5% in Q4 2024[207]. Credit Losses and Delinquency - The provision for credit losses decreased to $1.068 million in Q1 2025 from $2.944 million in Q1 2024, indicating a reduction of $1.876 million or 63.8%[170]. - The provision for credit losses decreased by $1.9 million for the three months ended March 31, 2025, compared to the same period in 2024, mainly due to lower receivable balances[179]. - Losses in changes in fair value of loans totaled $178.3 million for the three months ended March 31, 2025, compared to $159.2 million for the same period in 2024[181]. - Delinquency rates for receivables showed that 30-59 days past due were 3.3% in Q1 2025, down from 3.8% in Q4 2024[207]. - The company’s strategy for managing delinquency includes credit line management and pricing based on risks[206]. - Delinquency rates for private label credit receivables increased in early 2024 due to a mix shift towards higher delinquency receivables but with limited loss exposure[214]. - The first quarter of 2025 saw lower overall delinquency rates in both general purpose and private label credit receivables, which is expected to lead to lower charge-off rates in the second and third quarters of 2025[214]. Receivables and Growth - Managed receivables grew to $2,706.3 million as of March 31, 2025, up from $2,317.6 million as of March 31, 2024, indicating significant growth in the receivables portfolio[192]. - The total accounts of new credit card and private label customers increased by over 230,000 as of March 31, 2025, compared to the same period in 2024[172]. - Private label credit receivables increased by $345.8 million in the twelve months ended March 31, 2025, while general purpose credit card receivables grew by $42.8 million during the same period[211]. - The company expects continued quarterly receivables growth, dependent on new retail partner additions and consumer purchase activity[211]. - The company anticipates modest growth in managed receivables throughout 2025, despite recent declines[235]. Financing and Debt - The company anticipates additional debt financing in the coming quarters as it continues to grow, with higher effective interest rates on new debt compared to maturing debt[176]. - The company issued $150.0 million of 6.125% Senior Notes due 2026, with interest payable quarterly and maturing on November 30, 2026[246]. - In January and February 2024, the company issued $57.2 million of 2029 Senior Notes, followed by an additional $60.0 million in July 2024, bearing interest at 9.25% per annum[247]. - The company expects to continue evaluating debt and equity issuances to fund investment opportunities and acquisitions of credit card receivables portfolios[257]. Operational Efficiency - Total operating expenses showed greater efficiency as fixed costs remained stable despite significant growth in managed receivables over the past two years[189]. - Operating expenses have increased due to anticipated growth in private label credit and general purpose credit card operations, with variable costs expected to rise alongside new receivable acquisitions[190]. - The company expects continued increases in salaries and benefits costs in 2025 due to employee growth and inflationary pressures[192]. Market and Economic Conditions - The company faces risks related to general economic conditions, credit losses, and competition in the financial products market[270]. - Forward-looking statements made by the company involve substantial risks and uncertainties that could affect expected results[269]. - The company is not required to provide quantitative and qualitative disclosures about market risk as a smaller reporting company[273]. Technology and Innovation - The company’s flexible technology solutions allow bank partners to integrate a paperless process and instant decisioning platform, improving access to credit for underserved consumers[154]. - The company relies on proprietary and third-party technology, which poses risks related to security breaches[270].

Group 1 - Atlanticus Holdings Corporation (ATLC) closed at $51.95, with a 0.9% gain over the past four weeks, and a mean price target of $65.29 indicating a 25.7% upside potential [1] - The average price targets range from a low of $45 to a high of $90, with a standard deviation of $14.95, suggesting variability in analyst estimates [2] - Analysts show strong agreement on ATLC's ability to report better earnings than previously predicted, which supports the potential for stock upside [4][10] Group 2 - Recent trends indicate a positive shift in earnings estimate revisions, with one estimate moving higher and the Zacks Consensus Estimate increasing by 2.2% [11] - ATLC holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [12] - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [12]

April has been a rough ride for the stock market, shaken by broad U.S. tariffs and escalating global trade tensions. With tariffs climbing as high as 145% on imports from major partners like China—and China responding with 84% duties on U.S. products—investors are understandably nervous. Ongoing inflation pressures and worries about a possible recession or stagflation are adding to the uncertainty. As a result, the S&P 500 has slipped into correction territory, down more than 8% for the year.Investors looki ...

Key Takeaways There are tons of attractive value stocks to buy right now for those who know where to look The stock is has climbed 380% over the trailing five years Despite its strong outperformance, ATLC trades at a 50% discount to its sectorThe stock market has climbed off its recent lows as Wall Street looks ahead with cautious optimism to the possibility that the Trump administration will start making trade deals. Beyond tariffs, JPMorgan and other major banks recently kicked off the first-quarter ear ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Atlanticus Holdings Corporation (ATLC) , which belongs to the Zacks Financial - Miscellaneous Services industry.This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 10.30%.For the most recent quarter, Atlanticus was expected to post earnings o ...

Here's What You May Not Know About Analysts' Price Targets Atlanticus Holdings Corporation (ATLC) closed the last trading session at $51.15, gaining 3.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $66.43 indicates a 29.9% upside potential. The average comprises seven short-term price targets ranging from a low of $45 to a high of $90, with a standard deviation of $14.60. While ...

Core Insights - Atlanticus Holdings Corporation (ATLC) reported quarterly earnings of $1.42 per share, exceeding the Zacks Consensus Estimate of $1.21 per share, and up from $1.10 per share a year ago, representing an earnings surprise of 17.36% [1] - The company posted revenues of $353.19 million for the quarter ended December 2024, which was slightly below the Zacks Consensus Estimate by 0.85%, but an increase from $308.6 million year-over-year [2] - Atlanticus has surpassed consensus EPS estimates in all four of the last quarters, while it has topped consensus revenue estimates twice in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.11 on revenues of $351.66 million, and for the current fiscal year, it is $5.60 on revenues of $1.47 billion [7] - The estimate revisions trend for Atlanticus is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which Atlanticus belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - Atlanticus Holdings Corporation reported strong financial results for the fourth quarter and full year ended December 31, 2024, highlighting significant growth in net margin and managed receivables despite various economic challenges [1][3]. Financial and Operating Highlights - Fourth quarter 2024 net margin grew by 28.0% compared to the prior year, reaching $117.5 million [4][18]. - Total operating revenue and other income increased by 14.4% to $353.2 million for the fourth quarter [4][9]. - Managed receivables rose by 13.0% to $2.7 billion, with over $313.5 million in net receivables growth [4][6]. - The company served 3.7 million accounts, with 368,000 new accounts added during the quarter [4][6]. Management Commentary - The CEO expressed pride in the company's ability to achieve return on capital targets while navigating disruptions such as the pandemic and inflation [3]. - Over the past five years, managed receivables grew at a compounded annual growth rate of 24%, revenue by 31%, and earnings by 29% [3]. Revenue Breakdown - Consumer loans, including past due fees, contributed $251.7 million to total revenue for the quarter [27]. - Fees and related income on earning assets amounted to $83.8 million [27]. - Other revenue sources totaled $17.7 million [27]. Interest Expense and Debt - Interest expense for the fourth quarter was $44.7 million, a 36.9% increase from the previous year, driven by higher outstanding debt and borrowing costs [10][11]. - Outstanding notes payable increased to $2.16 billion as of December 31, 2024, from $1.80 billion a year earlier [11]. Changes in Fair Value of Loans - Changes in fair value of loans were reported at $184.3 million for the fourth quarter, slightly up from $184.1 million in the prior year [12]. Operating Expenses - Total operating expenses rose by 27.0% to $77.6 million, primarily due to increased servicing costs and inflationary pressures [14]. - Salaries and benefits accounted for a significant portion of the operating expenses, totaling $12.6 million for the quarter [27]. Net Income - Net income attributable to common shareholders increased by 31.7% to $26.3 million, or $1.42 per diluted share [18][27].