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Enova (ENVA) to Report Q4 Earnings: What's in the Cards?

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Enova International ENVA is scheduled to report fourth quarter and 2020 results on Feb 4, after market close. While earnings are expected to have improved year over year, revenues might have declined.

In the last reported quarter, the Chicago, IL-based online financial services provider’s results were supported by lower cost of revenues and expenses. However, fall in revenues was a headwind.

Enova has a decent earnings surprise history. It surpassed earnings estimates in two of the trailing four quarters and missed in the rest, the positive surprise being 80.2%, on average.

Enova International, Inc. Price and EPS Surprise

Enova International, Inc. Price and EPS Surprise
Enova International, Inc. Price and EPS Surprise

Enova International, Inc. price-eps-surprise | Enova International, Inc. Quote

The Zacks Consensus Estimate for earnings of $1.08 for the fourth quarter has been revised upward over the past 30 days. Also, the figure indicates a jump of 17.4% from the year-ago reported number.

The consensus estimate for revenues of $278.3 million suggests a fall of 19.4%.

Factors at Play

Muted Loan Growth: Muted lending scenario during the quarter is likely to have dampened the company’s efforts to grow the loan portfolio by increasing awareness of its products. Thus, loan originations are likely to have been subdued in the fourth quarter.

Lower Revenues: Given the expectations of weak loan demand, overall revenues are likely to have decreased during the quarter. Also, the top line might have been affected by lower interest rates and the company’s planned exit from the U.K. market.

Rise in Expenses: Enova’s expenses are likely to have escalated due to its efforts to attract new customers, and marketing of new and existing products.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Enova this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #3 (Hold) or better for this to happen, which is not the case here as elaborated below.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Enova has an Earnings ESP of -7.41%.

Zacks Rank: The stock currently carries a Zacks Rank #2 (Buy).

Stocks to Consider

LPL Financial Holdings Inc. LPLA is scheduled to release quarterly earnings on Feb 4. The company, which carries a Zacks Rank #3 currently, has an Earnings ESP of +0.13%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PennyMac Financial Services, Inc. PFSI is likely to release earnings figures on Feb 4. The company, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +13.07%.

The Carlyle Group L.P. CG is scheduled to announce quarterly results on Feb 4. The company has an Earnings ESP of +0.16% and currently holds a Zacks Rank of 3.

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