Company expects continued, but more modest, quarterly growth in credit card and retail receivables
Atlanticus anticipates higher operating and marketing expenses in 2026 due to receivables growth
Company expects improvements in Mercury portfolio fair value as product and policy changes are implemented
Overview
US fintech firm's Q2 revenue rose 89% yr/yr, beating analyst expectations
Diluted EPS for Q2 rose to $2.50 from $1.51 a year earlier, beating consensus
Net income attributable to common shareholders up 67%, also beating estimates
Analyst coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy"
Wall Street's median 12-month price target for Atlanticus Holdings Corp is $113.00, about 1.5% above its August 5 closing price of $111.31
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago
Result Drivers and key details
- Co said Q2 revenue and managed receivables were boosted by Mercury acquisition, which contributed $239.9 mln to revenue and $3.0 bln to managed receivables
Credit card and private label growth - Growth in general purpose credit card and private label credit products offered by bank partners drove receivables and revenue increases
Higher operating expenses - Operating expenses increased due to Mercury acquisition, increased marketing, card and loan servicing costs, and employee growth
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