Propel (TSE:PRL) Releases Earnings Results, Misses Estimates By $0.28 EPS

Key Points

• Propel missed quarterly expectations: EPS came in at $0.38 versus the $0.66 consensus estimate, while revenue of $179.6 million was below the $251.89 million forecast.
• The company raised its quarterly dividend to $0.255 per share from $0.24, representing an annualized dividend of $1.02 and a 3.8% yield.
• Analyst sentiment remains broadly positive, with the stock holding an average “Buy” rating, although Scotiabank downgraded it to “sector perform” and lowered its price target to C$27.

Propel (TSE:PRL - Get Free Report) announced its quarterly earnings data on Wednesday. The company reported $0.38 EPS for the quarter, missing the consensus estimate of $0.66 by ($0.28), FiscalAI reports. The firm had revenue of $179.60 million for the quarter, compared to the consensus estimate of $251.89 million. Propel had a net margin of 9.15% and a return on equity of 21.55%.

Propel Price Performance

Propel stock traded up $0.30 during trading hours on Wednesday, reaching $26.72. The company had a trading volume of 282,607 shares, compared to its average volume of 242,652. Propel has a 12-month low of $17.24 and a 12-month high of $37.33. The company has a 50-day moving average price of $24.22 and a 200 day moving average price of $22.53. The firm has a market cap of $1.05 billion, a price-to-earnings ratio of 19.94 and a beta of 0.79.

Propel Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Thursday, September 3rd will be paid a $0.255 dividend. This is an increase from Propel's previous quarterly dividend of $0.24. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.02 dividend on an annualized basis and a yield of 3.8%. Propel's payout ratio is presently 43.86%.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Scotiabank lowered Propel from a "sector outperform" rating to a "sector perform" rating and cut their target price for the stock from C$35.00 to C$27.00 in a research note on Tuesday, April 28th. Raymond James Financial lowered their price objective on shares of Propel from C$32.00 to C$31.00 and set an "outperform" rating for the company in a report on Wednesday, May 6th. TD set a C$33.00 price objective on shares of Propel and gave the company a "buy" rating in a research note on Tuesday, July 14th. Finally, TD Securities raised shares of Propel to a "strong-buy" rating in a report on Tuesday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "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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