Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher." Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ...

. Stonegate Capital Partners Updates 2Q24 Report on OppFi, Inc. (OPFI) August 08, 2024 9:16 AM EDT | Source: Reportable, Inc. Dallas, Texas--(Newsfile Corp. - August 8, 2024) - OppFi, Inc. (NYSE: OPFI) : Stonegate Capital Partners Updates Coverage on OppFi (NYSE: OPFI). To view the full announcement, including downloadable images, bios, and more, click here. Key Takeaways: Guidance Raised Year-over-year revenue margin expansion of 743bps Acquisition completed of a 35% equity interest in BittyAdvance Click i ...

Financial Data and Key Metrics Changes - Total revenue increased by 3.1% year-over-year to $126.3 million, marking a company record for a second quarter [5][11] - GAAP net income grew by 53.1% to $27.7 million, another record for a second quarter [5] - Adjusted net income increased by 56.2% year-over-year to $24.8 million, also a record for a second quarter [5] - Net income margin increased by 710 basis points to 21.9%, while adjusted net income margin expanded by 660 basis points to 19.6% [5] - Free cash flow generated in Q2 was $18 million, contributing to a solid balance sheet [6] Business Line Data and Key Metrics Changes - Total net originations increased by 2.4% to $205.5 million, with a 600 basis point improvement in total revenue yield to 134.8% [11] - Retained net originations decreased by 3.1% to $189.3 million due to a bank partner retaining a larger portion of loans [11] - New customer originations increased by 4.4% year-over-year, while existing customer originations increased by 0.9% [12] Market Data and Key Metrics Changes - The annualized net charge-off rate as a percentage of average receivables decreased by 280 basis points to 43.8% [12] - The annualized net charge-off rate as a percentage of total revenue decreased by 370 basis points to 32.5% [12] Company Strategy and Development Direction - The company is focusing on expanding into adjacent verticals, including small business financing, to facilitate credit access [6][10] - The recent investment in Bitty Advance is seen as a foundational step in establishing a small business financing vertical [8][10] - The company aims to build a leading credit access and financial services business with a suite of digital financial service products [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth opportunities due to improved credit performance and operational efficiencies [3][9] - The company raised its full-year earnings guidance by more than 20% and expects adjusted net income of $63 million to $65 million [14] - Management is monitoring macroeconomic factors such as inflation and unemployment, which could impact underwriting and credit performance [26] Other Important Information - The company paid down $10 million of debt and returned cash to stockholders through a special dividend and share repurchases [9][10] - The company has a healthy balance sheet with $80.8 million in cash and $301.8 million in total debt as of the end of Q2 [13] Q&A Session Summary Question: How much of the yield increase was due to mix versus pricing? - Management indicated that the yield increase was largely due to improved credit performance and strong repayment rates, along with the cessation of certain pricing tests [17] Question: Does the lower credit losses mean the company can accelerate growth? - Management confirmed that they are starting to feel confident about growth in the second half of the year, supported by a new underwriting model [18] Question: Any updates on the competitive environment? - Management noted ongoing competition but emphasized their focus on core customers and delivering value [19] Question: Are there any synergies expected from the Bitty transaction? - Management expressed optimism about synergies from the Bitty acquisition, highlighting complementary skill sets and potential for growth in the small business financing market [22][23] Question: What does the acquisition cost look like for new customers? - Management reported a 3% decrease in acquisition costs year-over-year, indicating disciplined spending [25] Question: How does the company factor macroeconomic changes into underwriting? - Management acknowledged inflation as a concern but noted potential benefits from lower interest costs if the Fed cuts rates [26]

OppFi Inc. (OPFI) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 70.59%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $0.10, delivering a surprise of 100%. Over the last four quarters, the company has su ...

This article is an excerpt from the InvestorPlace Digest newsletter. To get news like this delivered straight to your inbox, click here. "We have all this hot air in Washington," David Blitzer, S&P Dow Jones Indices chairman, said in a CNBC interview at the time. "But the rest of the economy is growing reasonably well… And that's probably what's behind the stock market's good track record." But Plug Power also has enormous dreams to become America's first one-stop shop for green hydrogen… and it now has sig ...

OppFi Inc. (OPFI) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________________________ FORM 10-Q __________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from__________to__________ Co ...

Financial Data and Key Metrics Changes - Total revenue increased by 5.8% year-over-year to $127.3 million, with a revenue yield improvement of 3.5 percentage points to 129.5% [6][24] - Net income rose to $10.1 million, up from $3.9 million, representing an increase of $6.2 million year-over-year [8] - Adjusted net income was $8.8 million, an increase of $4.9 million from the previous year [8][26] - Total expenses as a percentage of total revenue increased by 110 basis points year-over-year to 45.5%, but decreased by 270 basis points to 40.6% when excluding one-time expenses [7][18] Business Line Data and Key Metrics Changes - Total net originations increased by 2.4% to $163.5 million, while total retained net originations decreased by 2% to $152.5 million [24] - New customer originations decreased by 1.7% year-over-year, while existing customer originations increased by 5.7% [25] - The annualized net charge-off rate as a percentage of total revenue decreased by 110 basis points to 47.9% [25] Market Data and Key Metrics Changes - The company operates in 40 states through three bank partners, with a strong national footprint [31] - The addressable market expanded as bank partners entered new states, contributing to improved customer payment activity [12] Company Strategy and Development Direction - The company is focused on profitable growth and has increased its full-year adjusted net income guidance to $50 million to $54 million [20] - A new credit model is set to launch in Q2, aimed at improving risk evaluation for applicants [11] - The company plans to explore partnerships and acquisitions in adjacent services, particularly in small business lending and consumer financing [43] Management's Comments on Operating Environment and Future Outlook - Management noted that core inflation remains sticky, and interest rates are unlikely to decrease until late 2024 or early 2025 [13] - The tightening of credit standards by banks may present selective growth opportunities for the company [14] - Management expressed confidence in the company's ability to generate free cash flow and maintain a strong balance sheet [9][22] Other Important Information - The company declared its first-ever special dividend of $0.12 per share, reflecting its commitment to rewarding shareholders [9][22] - Unrestricted cash increased by 48.4% to $47.2 million, providing confidence for capital allocation decisions [19] Q&A Session Summary Question: Update on bank partnership model and states of operation - The company currently has three bank partners and operates in 40 states, with variations in loan ownership percentages due to state laws [31] Question: Sustainability of revenue yield performance - Management indicated that the Q1 yield performance is on the higher end and attributed it to strong payment recovery and operational efficiencies [32][33] Question: Operational expenses run rate for the year - Management suggested that operational expenses may decrease slightly going forward, excluding one-time expenses [34] Question: Drivers of outperformance and challenges - Strong payment activity and reduced acquisition costs contributed to outperformance, while sticky inflation and interest costs remain challenges [36] Question: Competitive environment updates - The tightening of credit standards above the company is allowing more segment one customers into the funnel, but the company remains cautious in its underwriting [37] Question: Special dividend declaration process - The special dividend is not formulaic but will be considered based on cash levels and needs [41] Question: Targeting adjacent services for growth - The company is looking at small business lending and consumer financing for goods as potential areas for expansion [43] Question: New versus existing customer underwriting processes - The company has optimized its funnel and improved operational efficiencies, contributing to lower acquisition costs [44]

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OppFi Inc. (OPFI) came out with quarterly earnings of $0.10 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this company would post earnings of $0.07 per share when it actually produced earnings of $0.10, delivering a surprise of 42.86%.Over the last four quarters, the company has sur ...