Overview
Consumer finance firm's Q4 revenue beat analyst expectations, driven by record originations
Net income for Q4 rose 30% yr/yr, with EPS up 33%
Company achieved all-time best operating expense ratio of 12.4%
Outlook
Regional Management plans to expand its auto-secured portfolio in 2026
Company to invest in technology and analytics for sustainable growth
Regional Management declares $0.30 dividend for first quarter 2026
Result Drivers
PORTFOLIO GROWTH - Net finance receivables grew 13.1% year-over-year, driven by digital leads, auto-secured product demand, and new branch openings
RECORD ORIGINATIONS - Total originations reached $537.3 mln, up 12.9% from the prior-year period, while maintaining prudent underwriting criteria
EXPENSE DISCIPLINE - Achieved all-time best operating expense ratio of 12.4%, reflecting improvements from prior periods
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $169.70 mln | $161.13 mln (3 Analysts) |
Q4 Net Income | $12.91 mln | ||
Q4 Credit Loss Provision | $66.38 mln | ||
Q4 Interest & Fee Income | $153.03 mln | ||
Q4 Pretax Profit | $16.16 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "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 $50.00, about 29.5% above its February 3 closing price of $38.62
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago
Press Release: ID:nBwbTggWRa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)