Propel (TSE:PRL) Posts Quarterly Earnings Results, Misses Expectations By $0.18 EPS

Key Points

• Quarterly results missed estimates: Propel reported EPS of $0.54 versus a $0.72 consensus (a $0.18 miss) and revenue of $166.07M versus $228.56M, with ROE 23.69% and a net margin of 10.05%.
• Dividend increased: the company raised its quarterly payout to $0.225 per share (annualized $0.90), implying a ~4.1% yield and a payout ratio around 38%.
• Analysts cut price targets but ratings remain mostly positive: several firms trimmed targets (examples: C$38→C$27, C$45→C$32), yet four analysts rate the stock Buy and one rates Hold, giving an average "Moderate Buy" consensus.

Propel (TSE:PRL - Get Free Report) announced its quarterly earnings data on Monday. The company reported $0.54 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.72 by ($0.18), FiscalAI reports. The firm had revenue of $166.07 million for the quarter, compared to the consensus estimate of $228.56 million. Propel had a return on equity of 23.69% and a net margin of 10.05%.

Propel Stock Performance

Shares of PRL traded up $0.49 during midday trading on Monday, hitting $21.90. 206,886 shares of the stock traded hands, compared to its average volume of 281,043. The business's 50 day moving average price is $20.04 and its two-hundred day moving average price is $22.74. The firm has a market capitalization of $862.05 million, a PE ratio of 15.53 and a beta of 0.56. Propel has a 1-year low of $17.24 and a 1-year high of $39.15.

Propel Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, March 4th. Stockholders of record on Wednesday, March 4th were issued a dividend of $0.225 per share. This represents a $0.90 annualized dividend and a dividend yield of 4.1%. This is a positive change from Propel's previous quarterly dividend of $0.21. The ex-dividend date of this dividend was Friday, February 20th. Propel's dividend payout ratio is presently 38.09%.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. ATB Cormark Capital Markets dropped their target price on shares of Propel from C$38.00 to C$27.00 and set an "outperform" rating on the stock in a report on Wednesday, March 4th. Canaccord Genuity Group decreased their price target on shares of Propel from C$37.00 to C$27.00 in a report on Wednesday, March 4th. Ventum Financial lowered their price objective on shares of Propel from C$4.00 to C$3.00 and set a "buy" rating for the company in a research report on Wednesday, March 4th. Stifel Nicolaus dropped their price objective on shares of Propel from C$38.00 to C$32.00 and set a "buy" rating on the stock in a research note on Wednesday, March 4th. Finally, Raymond James Financial cut their target price on shares of Propel from C$45.00 to C$32.00 and set an "outperform" rating on the stock in a report on Wednesday, March 4th. Four equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy".

Propel Company Profile

Propel Holdings Inc is a financial technology company committed to credit inclusion and helping underserved consumers by providing fair, fast, and transparent access to credit. It operates through its two brands: MoneyKey and CreditFresh. The company, through its MoneyKey brand, is a state-licensed direct lender and offers either Installment Loans or Lines of Credit to new customers in several US states. Through its CreditFresh brand, the company operates as a bank servicer that provides marketing, technology, and loan servicing services to unaffiliated, FDIC insured, state-chartered banks in the US (Bank Program).

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