Company plans to expand bank partnership to more states in second half of 2026
Regional Management expects bank partnership to materially impact net income and returns in 2027
Company intends to scale digital lending capability as credit performance is confirmed
Q2 results
Net income and diluted EPS fell 19.6% and 17.5% yr/yr amid higher credit loss provisions
U.S. consumer finance firm's Q2 revenue rose 6.7%, beating analyst expectations
Company repurchased 136,325 shares and improved operating expense ratio by 80 bps yr/yr
Analyst coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 Regional Management Corp is $49.00, about 15.1% above its July 28 closing price of $42.58
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 5 three months ago
Result drivers and key details
- Revenue growth was driven by higher average net finance receivables, especially from large and auto-secured loans, while small loan balances declined
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