Hexindai Inc. HX is slated to announce first-quarter fiscal 2020 (ended Jun 30, 2019) results on Sep 18, before market open. The company’s quarterly earnings and revenues are expected to decline year over year.
The China-based company’s fourth-quarter fiscal 2019 results reflected impact from an increase in expenses along with lower revenues and loans.
The Zacks Consensus Estimate for earnings for the fiscal first quarter indicates a 100% plunge from the year-ago reported number. Also, the consensus estimate for sales is $8.42 million, suggesting a decline of 83.7%.
Hexindai Inc. Sponsored ADR Price and Consensus
Hexindai Inc. Sponsored ADR price-consensus-chart | Hexindai Inc. Sponsored ADR Quote
Before we take a look at what our quantitative model predicts, let’s check the factors that are expected to influence fiscal first-quarter results.
Factors at Play
Lower Loans Volume: Heightened trade tensions with the United States are likely to have resulted in slowdown in consumer demand during the to-be-reported quarter. Thus, loan balance is likely to decrease.
Revenues Might Decline: With lower loan origination volume, the company’s loan facilitation income and other service income are likely to decline, thereby affecting top-line growth.
Asset Quality Likely to Deteriorate: The company’s asset quality is likely to have worsened in the to-be-reported quarter. The key reason being Hexindai primarily caters to demands of the middle-class in China, who are often considered as risky borrowers, and are more exposed to any economic downturn than larger companies.
Slight rise in expenses: Hexindai has been facing rise in operating expenses over the past several quarters. The same trend is likely to have persisted in the to-be-reported quarter as the company continues to invest in expansion strategies.
Now, let’s check what our quantitative model predicts.
According to our quantitative model, it cannot be conclusively predicted if Hexindai will be able to beat the Zacks Consensus Estimate this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better — to be confident of an earnings surprise call.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Hexindai is 0.00%.
Zacks Rank: It has a Zacks Rank of 3. While this increases the predictive power of the ESP, we also need a positive Earnings ESP to be sure of an earnings surprise call.
Stocks to Consider
Globe Life Inc. GL has been witnessing upward estimate revisions over the past 60 days. Moreover, this Zacks Rank #2 (Buy) stock has rallied 25.8% so far this year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Orix Corp Ads IX has been witnessing upward estimate revisions over the past 60 days. Additionally, the stock has risen 10.1% so far this year. It currently carries a Zacks Rank #2.
Houlihan Lokey, Inc. HLI earnings estimates have remained stable over the past 30 days. The company’s shares have gained 26.4% so far this year. At present, it carries a Zacks Rank of 2.
5 Stocks Set to Double
Zacks experts released their picks to gain +100% or more in 2020. One is a famous cutting-edge food company that is “hiding in plain sight.” Swamped with competitors and ignored by Wall Street, its stock price floundered. Now, suddenly, it acquired a company that gives it an advantage none of its peers have.
Today, see all 5 stocks with extreme growth potential >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Houlihan Lokey, Inc. (HLI) : Free Stock Analysis Report
Orix Corp Ads (IX) : Free Stock Analysis Report
Globe Life Inc. (GL) : Free Stock Analysis Report
Hexindai Inc. Sponsored ADR (HX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research