Elevate Credit misses by $0.23, reports revs in-line; guides FY18 EPS below consensus, revs below consensus; Delays in rolling out new technology and credit models a drag on Q3 results and outlook
- Reports Q3 (Sep) loss of $0.10 per share, $0.23 worse than the S&P Capital IQ Consensus of $0.13; revenues rose 16.6% year/year to $201.48 mln vs the $201.71 mln S&P Capital IQ Consensus.
- Co issues downside guidance for FY18, sees EPS of $0.23-0.32, excluding non-recurring items, vs. $0.67 S&P Capital IQ Consensus; sees FY18 revs of $790-795 mln vs. $802.97 mln S&P Capital IQ Consensus.
- "We experienced delays in rolling out new technology and credit models that are needed to drive continued improvements in credit quality for our US products. As a result of these and other issues, new customer acquisition and credit quality were both relatively flat with the prior year and anticipated improvements in margins were not realized. Additionally, we experienced a significant increase in UK costs related to complaints by claims management companies as well as high legal costs related to several company initiatives. This affected earnings in the quarter and our outlook for the full year."
No comments:
Post a Comment