Atlanticus Holdings Corporation (ATLC) Fourth Quarter Earnings and Revenue Beat Estimates

0

AAtlanticus Holdings Corporation (ATLC) posted quarterly earnings of $2.13 per share, beating Zacks’ consensus estimate of $2.10 per share. That compares to earnings of $1.10 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents a profit surprise of 1.43%. A quarter ago, this company was expected to post a profit of $1.50 per share when it was actually producing a profit of $2.60, delivering a surprise of 73.33%.

In the past four quarters, the company has exceeded consensus EPS estimates three times.

Atlanticus Holdings Corporation, which is part of the Zacks Financial – Miscellaneous Services industry, reported revenue of $216.52 million for the quarter ended December 2021, beating Zacks’ consensus estimate by 2.40%. That compares to revenues of $142 million a year ago. The company has exceeded consensus revenue estimates three times in the past four quarters.

The sustainability of the immediate stock price movement based on recently released numbers and future earnings forecasts will primarily depend on management’s comments on the earnings call.

Shares of Atlanticus Holdings Corporation have lost about 36.1% year-to-date against a -12.4% decline for the S&P 500.

What’s next for Atlanticus Holdings Corporation?

While Atlanticus Holdings Corporation has underperformed the market so far this year, the question on investors’ minds is: what’s next for the stock?

There is no easy answer to this key question, but a reliable measure that can help investors answer it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed recently.

Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Prior to this earnings release, the trend in estimate revisions for Atlanticus Holdings Corporation is mixed. While the magnitude and direction of estimate revisions may change following the release of the company’s earnings report, the current situation translates into a No. 3 (hold) Zacks ranking for the stock. Thus, the shares should move in line with the market in the near future. You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how the estimates for the next few quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.08 on $208.86 million in revenue for the upcoming quarter and $9.05 on $939.85 million in revenue for the current fiscal year.

Investors should be aware that the outlook for the sector can also have a significant impact on stock performance. In terms of Zacks industry ranking, Financial – Miscellaneous Services is currently in the top 38% of Zacks 250+ industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.

Another stock in the same sector, Sachem Capital Corp. (SACH), has not yet released results for the quarter ended December 2021.

This company is expected to post quarterly earnings of $0.11 per share in its next report, representing a year-over-year change of -8.3%. The consensus EPS estimate for the quarter has been revised down 7.7% in the past 30 days from the current level.

Earnings from Sachem Capital Corp. are expected to be $9.09 million, up 59.2% from the prior year quarter.

Zacks names ‘only one best choice for doubling up’

From thousands of stocks, 5 Zacks experts have each picked their favorite to skyrocket by +100% or more in the coming months. Of these 5, Research Director Sheraz Mian selects one to have the most explosive advantage of all.

It’s a little-known chemical company that’s up 65% year-on-year, but still very cheap. With relentless demand, rising earnings estimates for 2022 and $1.5 billion for stock buybacks, retail investors could jump in at any moment.

This company could rival or surpass other recent Zacks stocks that are expected to double, such as Boston Beer Company which jumped +143.0% in just over 9 months and NVIDIA which jumped +175.9% in one. year.

Free: See our best stock and our 4 finalists >>

Click to get this free report

Atlanticus Holdings Corporation (ATLC): Free Stock Analysis Report

Sachem Capital Corp. (SACH): Free Share Analysis Report

To read this article on Zacks.com, click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Share.

Comments are closed.