Personal Loan Stocks Q4 Results: Benchmarking FirstCash (NASDAQ:FCFS)

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how personal loan stocks fared in Q4, starting with FirstCash (NASDAQ:FCFS).

Personal loan providers offer unsecured credit for various consumer needs. The sector benefits from digital application processes, increasing consumer comfort with online financial services, and opportunities in underserved credit segments. Headwinds include credit risk management in unsecured lending, regulatory oversight of lending practices, and intense competition affecting margins from both traditional and fintech lenders.

The 8 personal loan stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 0.9% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.6% since the latest earnings results.

FirstCash (NASDAQ:FCFS)

Offering a financial lifeline to the unbanked and credit-constrained since 1988, FirstCash (NASDAQ:FCFS) operates pawn stores across the U.S. and Latin America while also providing retail point-of-sale payment solutions for credit-constrained consumers.

FirstCash reported revenues of $1.06 billion, up 19.8% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

Mr. Rick Wessel, chief executive officer, stated, “FirstCash generated record fourth quarter and full year revenue and earnings results. Driven by strong fourth quarter revenue growth of 20%, the Company marked its first fiscal quarter in history in which consolidated revenues exceeded $1 billion, resulting in a 26% increase in fourth quarter earnings per share.

Interestingly, the stock is up 14% since reporting and currently trades at $195.92.

Is now the time to buy FirstCash? Access our full analysis of the earnings results here, it’s free.

Best Q4: Sezzle (NASDAQ:SEZL)

Founded in 2016 as an alternative to traditional credit cards for younger shoppers, Sezzle (NASDAQ:SEZL) provides a payment platform that allows consumers to split purchases into four interest-free installments over six weeks at participating retailers.

Sezzle reported revenues of $129.9 million, up 32.2% year on year, outperforming analysts’ expectations by 2.7%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 14.9% since reporting. It currently trades at $71.94.

Is now the time to buy Sezzle? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Affirm (NASDAQ:AFRM)

Founded by PayPal co-founder Max Levchin with a mission to create honest financial products, Affirm (NASDAQ:AFRM) provides a payment network that allows consumers to make purchases and pay for them over time with transparent, flexible installment loans.

Affirm reported revenues of $1.12 billion, up 29.6% year on year, exceeding analysts’ expectations by 6.3%. Still, it was a mixed quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 15% since the results and currently trades at $50.52.

Read our full analysis of Affirm’s results here.

Enova (NYSE:ENVA)

Pioneering online lending since 2004 with a massive database of over 65 terabytes of customer behavior data, Enova International (NYSE:ENVA) provides online financial services including installment loans and lines of credit to non-prime consumers and small businesses in the United States and Brazil.

Enova reported revenues of $839.4 million, up 15.1% year on year. This result met analysts’ expectations. Overall, it was a strong quarter as it also logged a beat of analysts’ EPS estimates and a narrow beat of analysts’ EBITDA estimates.

Enova had the weakest performance against analyst estimates among its peers. The stock is down 11.9% since reporting and currently trades at $138.97.

Read our full, actionable report on Enova here, it’s free.

LendingClub (NYSE:LC)

Pioneering peer-to-peer lending in the US before evolving into a digital bank, LendingClub (NYSE:LC) operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services.

LendingClub reported revenues of $266.5 million, up 22.7% year on year. This print surpassed analysts’ expectations by 1.8%. It was a strong quarter as it also produced full-year EPS guidance beating analysts’ expectations and a decent beat of analysts’ revenue estimates.

The stock is down 24.5% since reporting and currently trades at $14.78.

Read our full, actionable report on LendingClub here, it’s free.

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