Atlanticus (NASDAQ:ATLC) Posts Earnings Results, Beats Expectations By $0.54 EPS

Key Points

• Atlanticus beat earnings expectations, reporting $2.23 per share versus the $1.69 consensus estimate, even though quarterly revenue of $679.59 million came in below analyst forecasts.
• The company highlighted strong operating momentum, with total operating revenue up 97% year over year and managed receivables excluding Mercury rising 35%, while management said the Mercury acquisition is integrating faster than planned.
• Atlanticus said credit performance remains stable, but costs are rising sharply, including a 158% jump in interest expense and higher operating expenses as the business scales.

Atlanticus (NASDAQ:ATLC - Get Free Report) released its earnings results on Thursday. The credit services provider reported $2.23 EPS for the quarter, topping analysts' consensus estimates of $1.69 by $0.54, FiscalAI reports. The company had revenue of $679.59 million for the quarter, compared to analysts' expectations of $749.36 million. Atlanticus had a return on equity of 24.04% and a net margin of 5.86%.

Here are the key takeaways from Atlanticus' conference call:

• Atlanticus says the Mercury acquisition is integrating faster than planned with quicker-than-modeled repricing, stronger originations and earlier realization of operating synergies.
• First-quarter results were strong: total operating revenue +97% YoY to $680M, net income of $41.9M (EPS $2.23, +50% YoY) and ROAE 26.8%, with management reiterating targets of ≥20% ROE going forward.
• Core growth remains robust with managed receivables ex‑Mercury +35% YoY and management saying it is taking share in retail credit while benefiting from broader merchant and bank partner growth.
• Credit performance is described as stable — tax‑season paydowns improved delinquencies and newer cohorts are performing well, though management is monitoring inflation and rising gas prices for potential stress.
• Costs and portfolio marks rose: changes in fair value loans widened (‑$366M) and interest expense +158% YoY to $123M, with operating expenses up 69% as the company scales.

Atlanticus Price Performance

ATLC stock traded up $6.47 during mid-day trading on Friday, reaching $84.81. 169,578 shares of the company traded hands, compared to its average volume of 64,679. The company has a debt-to-equity ratio of 1.16, a current ratio of 1.23 and a quick ratio of 1.23. The company has a market capitalization of $1.26 billion, a P/E ratio of 11.24 and a beta of 2.14. Atlanticus has a 52-week low of $45.74 and a 52-week high of $86.07. The company has a fifty day moving average price of $61.42 and a 200-day moving average price of $59.73.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Advisory Services Network LLC purchased a new position in Atlanticus during the 3rd quarter valued at about $47,000. Jones Financial Companies Lllp purchased a new position in Atlanticus during the 1st quarter valued at about $71,000. BNP Paribas Financial Markets grew its holdings in Atlanticus by 334.8% during the 2nd quarter. BNP Paribas Financial Markets now owns 1,735 shares of the credit services provider's stock valued at $95,000 after buying an additional 1,336 shares in the last quarter. State of Wyoming purchased a new position in Atlanticus during the 4th quarter valued at about $158,000. Finally, Franklin Resources Inc. purchased a new position in Atlanticus during the 3rd quarter valued at about $202,000. Hedge funds and other institutional investors own 14.15% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the company. Weiss Ratings upgraded Atlanticus from a "hold (c-)" rating to a "hold (c)" rating in a research note on Wednesday. Citizens Jmp boosted their price objective on Atlanticus from $100.00 to $102.00 and gave the company a "market outperform" rating in a research note on Tuesday, March 17th. Zacks Research upgraded Atlanticus from a "hold" rating to a "strong-buy" rating in a research note on Monday, April 20th. B. Riley Financial boosted their price objective on Atlanticus from $90.00 to $98.00 and gave the company a "buy" rating in a research note on Monday, March 23rd. Finally, Wall Street Zen cut Atlanticus from a "strong-buy" rating to a "buy" rating in a research note on Saturday, April 25th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $91.25.

About Atlanticus

Atlanticus Holdings Corporation is a specialty financial services holding company that provides credit products and solutions to consumers across the United States. Through its subsidiaries, the company offers proprietary credit card programs, installment loan products and deposit accounts designed to serve customers who may have limited access to traditional credit. Atlanticus markets its offerings through a variety of channels, including direct‐to‐consumer online platforms, mail order, call centers and partnerships with retail and e-commerce businesses.

The company underwrites and services credit card portfolios under private-label and co-branded agreements, combining technology‐enabled underwriting with tailored customer service.

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