Group 1 - Atlanticus Holdings Corporation (ATLC) closed at $51.95, with a 0.9% gain over the past four weeks, and a mean price target of $65.29 indicating a 25.7% upside potential [1] - The average price targets range from a low of $45 to a high of $90, with a standard deviation of $14.95, suggesting variability in analyst estimates [2] - Analysts show strong agreement on ATLC's ability to report better earnings than previously predicted, which supports the potential for stock upside [4][10] Group 2 - Recent trends indicate a positive shift in earnings estimate revisions, with one estimate moving higher and the Zacks Consensus Estimate increasing by 2.2% [11] - ATLC holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [12] - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [12]

April has been a rough ride for the stock market, shaken by broad U.S. tariffs and escalating global trade tensions. With tariffs climbing as high as 145% on imports from major partners like China—and China responding with 84% duties on U.S. products—investors are understandably nervous. Ongoing inflation pressures and worries about a possible recession or stagflation are adding to the uncertainty. As a result, the S&P 500 has slipped into correction territory, down more than 8% for the year.Investors looki ...

Key Takeaways There are tons of attractive value stocks to buy right now for those who know where to look The stock is has climbed 380% over the trailing five years Despite its strong outperformance, ATLC trades at a 50% discount to its sectorThe stock market has climbed off its recent lows as Wall Street looks ahead with cautious optimism to the possibility that the Trump administration will start making trade deals. Beyond tariffs, JPMorgan and other major banks recently kicked off the first-quarter ear ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Atlanticus Holdings Corporation (ATLC) , which belongs to the Zacks Financial - Miscellaneous Services industry.This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 10.30%.For the most recent quarter, Atlanticus was expected to post earnings o ...

Here's What You May Not Know About Analysts' Price Targets Atlanticus Holdings Corporation (ATLC) closed the last trading session at $51.15, gaining 3.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $66.43 indicates a 29.9% upside potential. The average comprises seven short-term price targets ranging from a low of $45 to a high of $90, with a standard deviation of $14.60. While ...

Core Insights - Atlanticus Holdings Corporation (ATLC) reported quarterly earnings of $1.42 per share, exceeding the Zacks Consensus Estimate of $1.21 per share, and up from $1.10 per share a year ago, representing an earnings surprise of 17.36% [1] - The company posted revenues of $353.19 million for the quarter ended December 2024, which was slightly below the Zacks Consensus Estimate by 0.85%, but an increase from $308.6 million year-over-year [2] - Atlanticus has surpassed consensus EPS estimates in all four of the last quarters, while it has topped consensus revenue estimates twice in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.11 on revenues of $351.66 million, and for the current fiscal year, it is $5.60 on revenues of $1.47 billion [7] - The estimate revisions trend for Atlanticus is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which Atlanticus belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - Atlanticus Holdings Corporation reported strong financial results for the fourth quarter and full year ended December 31, 2024, highlighting significant growth in net margin and managed receivables despite various economic challenges [1][3]. Financial and Operating Highlights - Fourth quarter 2024 net margin grew by 28.0% compared to the prior year, reaching $117.5 million [4][18]. - Total operating revenue and other income increased by 14.4% to $353.2 million for the fourth quarter [4][9]. - Managed receivables rose by 13.0% to $2.7 billion, with over $313.5 million in net receivables growth [4][6]. - The company served 3.7 million accounts, with 368,000 new accounts added during the quarter [4][6]. Management Commentary - The CEO expressed pride in the company's ability to achieve return on capital targets while navigating disruptions such as the pandemic and inflation [3]. - Over the past five years, managed receivables grew at a compounded annual growth rate of 24%, revenue by 31%, and earnings by 29% [3]. Revenue Breakdown - Consumer loans, including past due fees, contributed $251.7 million to total revenue for the quarter [27]. - Fees and related income on earning assets amounted to $83.8 million [27]. - Other revenue sources totaled $17.7 million [27]. Interest Expense and Debt - Interest expense for the fourth quarter was $44.7 million, a 36.9% increase from the previous year, driven by higher outstanding debt and borrowing costs [10][11]. - Outstanding notes payable increased to $2.16 billion as of December 31, 2024, from $1.80 billion a year earlier [11]. Changes in Fair Value of Loans - Changes in fair value of loans were reported at $184.3 million for the fourth quarter, slightly up from $184.1 million in the prior year [12]. Operating Expenses - Total operating expenses rose by 27.0% to $77.6 million, primarily due to increased servicing costs and inflationary pressures [14]. - Salaries and benefits accounted for a significant portion of the operating expenses, totaling $12.6 million for the quarter [27]. Net Income - Net income attributable to common shareholders increased by 31.7% to $26.3 million, or $1.42 per diluted share [18][27].

Collection Strategies - The company employs various collection strategies, including reducing or eliminating contractual interest and waiving fees based on payment history, to improve collections and customer service [46]. - Collection strategies are regularly monitored and adjusted based on customer satisfaction, delinquency rates, expected losses, and costs to collect, leading to better collection experiences and lower bad debt losses [49]. - Accounts that are 90 days or more past due are placed on non-accrual status, which may result in reduced interest and fees if certain payment conditions are met [54]. - The company utilizes re-aging techniques for accounts that meet specific criteria, potentially delaying or reducing delinquencies and charge-offs by less than 10% and 5%, respectively [52]. - The company has over 25 years of experience in customer service and collections, which helps mitigate credit and payment risks [336][341]. Workforce and Employment - The company has 417 employees as of December 31, 2024, with an average tenure of over 11 years, indicating a stable workforce [63]. Competition and Market Environment - The auto finance segment faces competition from both national and regional companies, as well as smaller private firms, creating a fragmented market [62]. - The company faces substantial competition from financial service and fintech companies, impacting its financial performance based on the performance of investments in receivables [61]. Credit Loss and Financial Risks - The company establishes an allowance for credit losses based on loan performance, delinquency data, and economic trends, which could materially affect operations if actual results differ from estimates [331]. - A 10% increase in credit loss rates could result in a pre-tax earnings loss of $88.2 million, while a decrease could yield a gain of $88.2 million [337]. - The company is exposed to market return risk through loans, interest, and fees receivable, which are measured at fair value using a discounted cash flow methodology [338][339]. Interest Rate Risk - The company has $407.5 million in notes payable subject to interest rate risk, with a potential pre-tax earnings impact of $(4.1) million if interest rates increase by 100 basis points [335]. - The Auto Finance segment's loans receivable are fixed rate amortizing loans, exposing the company to interest rate risks due to structured financing facilities priced over floating rate benchmarks [334]. - The company mitigates interest rate risk by maintaining the majority of its debt facilities at fixed interest rates [333]. - The fair value of loans at December 31, 2024, is estimated at $2,630.3 million, with a potential impact of $(56.6) million on pre-tax earnings if discount rates increase by 10% [340]. - A 10% change in payment rates could lead to a pre-tax earnings impact of $201.5 million if rates increase, and $(201.5) million if they decrease [342]. - Total borrowings associated with loans at fair value and amortized cost amount to $2.2 billion as of December 31, 2024 [343]. Sensitivity Analysis - The sensitivity analysis assumes an immediate hypothetical change in market interest rates and credit loss rates, indicating potential volatility in earnings [335][337].

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Atlanticus Holdings Corporation (ATLC) , which belongs to the Zacks Financial - Miscellaneous Services industry, could be a great candidate to consider.When looking at the last two reports, this company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 8.52%, on average, in the last two quarters.For the ...

Core Viewpoint - Atlanticus Holdings Corporation (ATLC) has experienced a significant increase in stock price, attributed to its competitive strengths and positive earnings expectations [1][2][4]. Company Overview - Atlanticus specializes in providing credit to consumers underserved by traditional financial institutions, particularly those with lower FICO scores [3]. - The company leverages over 25 years of experience in consumer loan servicing, utilizing advanced technology and predictive analytics to enhance its offerings [2][3]. Financial Performance - The upcoming quarterly earnings report is expected to show earnings of $1.21 per share, reflecting a year-over-year increase of 10% [4]. - Revenue projections stand at $356.22 million, indicating a 15.4% growth compared to the same quarter last year [4]. Market Sentiment - The consensus EPS estimate for Atlanticus has been revised 3.4% higher in the last 30 days, suggesting a positive trend that may lead to stock price appreciation [5]. - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the market [5]. Industry Context - Atlanticus is part of the Zacks Financial - Miscellaneous Services industry, which includes other companies like MidCap Financial Investment (MFIC) [5]. - MFIC's EPS estimate has remained unchanged, with a year-over-year decline of 10.9%, and it currently holds a Zacks Rank of 2 (Buy) [6].