Atlanticus (NASDAQ:ATLC) Issues Quarterly Earnings Results

by · The Cerbat Gem

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

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 Stock Performance

Atlanticus stock traded up $6.47 on Friday, reaching $84.81. 169,578 shares of the stock were exchanged, compared to its average volume of 64,679. The company has a current ratio of 1.23, a quick ratio of 1.23 and a debt-to-equity ratio of 1.16. Atlanticus has a twelve month low of $45.74 and a twelve month high of $86.07. The firm has a fifty day moving average price of $61.42 and a two-hundred day moving average price of $59.73. The stock has a market cap of $1.26 billion, a PE ratio of 12.66 and a beta of 2.14.

Key Stories Impacting Atlanticus

Here are the key news stories impacting Atlanticus this week:

Wall Street Analyst Weigh In

A number of research firms recently issued reports on ATLC. Citizens Jmp lifted their price objective on Atlanticus from $100.00 to $102.00 and gave the company a “market outperform” rating in a research report on Tuesday, March 17th. Zacks Research upgraded shares of Atlanticus from a “hold” rating to a “strong-buy” rating in a research note on Monday, April 20th. Wall Street Zen cut shares of Atlanticus from a “strong-buy” rating to a “buy” rating in a report on Saturday, April 25th. Weiss Ratings raised Atlanticus from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday. Finally, B. Riley Financial increased their price objective on Atlanticus from $90.00 to $98.00 and gave the company a “buy” rating in a report on Monday, March 23rd. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $91.25.

Get Our Latest Stock Report on Atlanticus

Hedge Funds Weigh In On Atlanticus

Several large investors have recently made changes to their positions in ATLC. Wellington Management Group LLP grew its holdings in Atlanticus by 54.7% in the 4th quarter. Wellington Management Group LLP now owns 704,282 shares of the credit services provider’s stock valued at $47,152,000 after buying an additional 249,100 shares during the last quarter. Bridgeway Capital Management LLC grew its stake in shares of Atlanticus by 133.5% in the second quarter. Bridgeway Capital Management LLC now owns 93,234 shares of the credit services provider’s stock worth $5,105,000 after acquiring an additional 53,312 shares during the last quarter. AQR Capital Management LLC bought a new position in Atlanticus during the first quarter worth $1,083,000. Charles Schwab Investment Management Inc. raised its stake in Atlanticus by 42.3% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 65,155 shares of the credit services provider’s stock valued at $4,362,000 after purchasing an additional 19,357 shares during the last quarter. Finally, Vanguard Group Inc. raised its stake in Atlanticus by 6.7% during the 3rd quarter. Vanguard Group Inc. now owns 305,772 shares of the credit services provider’s stock valued at $17,912,000 after purchasing an additional 19,159 shares during the last quarter. Institutional investors and hedge funds own 14.15% of the company’s stock.

About Atlanticus

(Get Free Report)

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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