PRG Earnings Prediction
The chart below shows how PRG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PRG sees a -5.27% change in stock price 10 days leading up to the earnings, and a +4.58% change 10 days following the report. On the earnings day itself, the stock moves by +7.41%. This data can give you a slight idea of what to expect for the next quarter's release.
PRG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
606.14M
3.99%
2.36%
Gross Margin
--
--
--
Operating Margin
8.12%
-14.16%
-17.90%
Net Margin
13.85%
130.45%
142.98%
EPS
1.94
155.26%
151.95%
No Data Available
PRG Earnings Analysis
PROG Holdings, Inc. Corporation (PRG.N) Earnings Conference Call
Positive
Consolidated Revenue Growth: In Q3 2024, the company achieved consolidated revenue of $606.1 million, representing a 4% growth compared to Q3 2023.
EBITDA Margin Improvement: The consolidated adjusted EBITDA reached $63.5 million, resulting in a 10.5% margin driven by GMV growth and supported by stable portfolio performance.
Impressive GMV Growth: The Q3 GMV growth was impressive at 11.6%, surpassing anticipated high single-digit growth rates.
Strong Balance Sheet Analysis: The company maintained a strong balance sheet with $221.7 million in cash and a gross debt of $600 million, resulting in a net leverage ratio of 1.4 times adjusted EBITDA.
Dividend and Share Repurchase: The company paid a quarterly cash dividend of $0.12 per share and repurchased 810,000 shares of common stock at a weighted average price of $45.69 per share.
Negative
Q3 Revenue Growth Slowdown: Consolidated revenue for Q3 2024 was $606.1 million, representing only 4% growth compared to Q3 2023, indicating a slowdown in revenue growth.
EBITDA Margin Decline: The adjusted EBITDA margin decreased to 10.5% in Q3 2024 from 12.3% in the same period last year, reflecting declining profitability.
Leased Merchandise Write-Offs: The provision for leased merchandise write-offs remained at 7.7% in Q3 2024, consistent with pre-pandemic levels, indicating persistent challenges in managing write-offs.
Gross Margin Decline: The gross margin of 31.2% in Q3 2024 was 110 basis points lower than the prior year, suggesting increased cost pressures affecting profitability.
SG&A Expense Reduction: The SG&A expense for Q3 was $76.5 million, a decrease of approximately $700,000 or 0.9% compared to $77.2 million in the same quarter last year, indicating tight cost management but also potential impacts on operational capacity.
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PRG Earning Call Sentiment
PROG Holdings, Inc. (PRG) Q3 2024 Earnings Call Transcript
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PRG.N
-1.22%Positive
The earnings call summary reveals a mix of positive and cautious elements. Financial performance shows growth in revenue and GMV, despite slightly lower margins. The Q&A section highlights optimism for Q4, with expectations for lower write-offs and strong GMV production. Share repurchase activity and dividend payments indicate shareholder value focus. Despite some uncertainties in GMV details and a soft leasing environment, the overall sentiment is positive, driven by strong partnership growth and marketplace performance. Given the small-cap nature, the stock is likely to react positively, with a 2-8% increase expected.