Rise in NII & Originations to Aid ENVA's Q3 Earnings, Expenses to Hurt

Enova International, Inc. ENVA is slated to announce third-quarter 2025 results on Oct. 23, after market close. Its quarterly earnings and revenues are expected to have recorded a rise on a year-over-year basis.

In the second quarter, ENVA’s earnings beat the Zacks Consensus Estimate. Higher net revenues and loans and finance receivables drove the results. On the other hand, an increase in expenses was an undermining factor.

Enova has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering a surprise of 8.72%, on average.

Key Factors & Estimates to Note Ahead of ENVA’s Q3 Earnings

Revenues: As the third quarter witnessed clarity on many macro issues, including the tariff plan and the Federal Reserve’s monetary policy, the lending scenario was good. Per the Fed’s latest data, the demand for consumer loans was decent. 

Further, the Fed lowered interest rates by 25 basis points to 4.00-4.25% in mid-September amid a softening labor market. This is less likely to have affected Enova’s NII, as rates remained stable for most of the quarter. Thus, amid gradually stabilizing funding/deposit costs, the company’s NII is expected to have been positively impacted by higher originations and relatively higher rates.

Expenses: Enova has been witnessing a persistent rise in expenses over the past several quarters due to higher marketing costs and investment in technology upgrades. Thus, technological investments and marketing costs for client acquisition are expected to have led to an increase in operating expenses in the third quarter.

Asset Quality: Enova has maintained solid credit quality over the quarters. The company is likely to have witnessed higher net charge-offs and potential delinquent loans, given the impact of Trump’s tariffs on inflation and rising loan balances.

Earnings Whispers for Enova

According to our quantitative model, the chances of Enova beating the Zacks Consensus Estimate for earnings this time are low. This is because it lacks the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Enova is -1.21%.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
 
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for ENVA’s third-quarter earnings of $3.05 has remained unchanged at $3.05 over the past seven days. The estimate indicates a rise of 24.5% from the prior-year quarter.

The consensus estimate for sales is pegged at $809.4 million, implying an increase of 17.3%.

Finance Stocks That Warrant a Look

Here are a couple of finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:

The Earnings ESP for East West Bancorp EWBC is +1.06% and it carries a Zacks Rank #3 at present. The company is slated to report third-quarter 2025 results on Oct. 22. 

Over the past seven days, the Zacks Consensus Estimate for East West Bancorp’s quarterly earnings has been unchanged at $2.35.

Valley National VLY is scheduled to announce third-quarter 2025 results on Oct. 23. The company has a Zacks Rank #3 and an Earnings ESP of +2.60% at present.

Quarterly earnings estimates for Valley National have remained unchanged at 26 cents over the past week.

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This article originally published on Zacks Investment Research (zacks.com).

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