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 -1.12% change in stock price 10 days leading up to the earnings, and a +1.58% change 10 days following the report. On the earnings day itself, the stock moves by +3.97%. 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
623.32M
7.95%
2.83%
Gross Margin
--
--
--
Operating Margin
8.34%
4.77%
2.71%
Net Margin
9.23%
186.65%
-33.36%
EPS
1.35
229.27%
-30.41%
No Data Available
PRG Earnings Analysis
PROG Holdings Inc Corporation (PRG.N) Earnings Conference Call
Positive
Earnings Per Share Beat: PROG Holdings, Inc. reported an EPS of $0.80, exceeding expectations of $0.77, indicating strong financial performance.
GMV Growth Achievement: Progressive Leasing's GMV grew 7.3% to $1.93 billion in 2024, driven by effective sales, marketing, and technology initiatives.
GMV Growth Achievement: In Q4, Progressive Leasing achieved a 9.1% year-over-year GMV growth, reflecting strong consumer demand for lease-to-own offerings.
Effective Write-Off Management: The company successfully managed write-offs within the targeted range of 6% to 8%, with Q4 write-offs at 7.9%, demonstrating effective portfolio management.
Q4 Adjusted EBITDA Growth: Adjusted EBITDA for Q4 increased 7.7% to $65.7 million, showcasing operational efficiency and strong financial performance.
Leasing Portfolio Growth: The gross leased asset balance increased by 6.1% in 2024, a significant improvement from the previous year's decline, indicating growth in the leasing portfolio.
GMV Triples Success: The PROG Marketplace platform nearly tripled its GMV in 2024, far exceeding the goal of doubling year-over-year, highlighting successful direct-to-consumer initiatives.
Exclusive Retail Partnership: The company signed a long-term exclusive partnership with a large regional retail partner, enhancing its retail partnerships and growth potential.
GMV Triples in 2024: Forre, the buy now pay later solution, tripled its GMV in 2024, reaching over $300 million, indicating strong demand for flexible payment options.
Strong Cash Flow Generation: The company generated $138.5 million in cash from operations in 2024, demonstrating strong cash flow generation and financial health.
Negative
Gross Margin Decline Factors: Progressive Leasing's gross margin decreased in 2024 compared to 2023 due to higher delinquencies, particularly among new customers, and a higher percentage of customers opting for 90-day purchase options.
Write-offs and Portfolio Risks: Q4 2024 write-offs were 7.9%, slightly above expectations, primarily due to higher delinquencies from new customer acquisitions, indicating potential risks in portfolio performance.
Retail Partner Bankruptcy Impact: The bankruptcy of a major retail partner, Big Lots, is expected to create headwinds for GMV in 2025, with projections reflecting approximately flat GMV for the first quarter.
SG&A Deleverage Anticipation: The company anticipates slight SG&A deleverage in 2025 as a result of decreased revenue due to Big Lots' bankruptcy, combined with ongoing investments in marketing and technology.
Gross Margin Challenges Ahead: Progressive Leasing's gross margin is expected to face challenges in 2025 due to higher delinquency rates and the diminishing impact of the Big Lots portfolio, which had a higher profitability profile.
PRG FAQs
How does PRG typically perform around its earnings report dates?
Is PROG Holdings Inc (PRG) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
PRG Earning Call Sentiment
PROG Holdings, Inc. (NYSE:PRG) Q4 2024 Earnings Call Transcript
PRG.N
0.04%Positive
The earnings call presents a mixed outlook. Financial performance shows growth in EPS and GMV, but challenges like declining gross margins and higher write-offs are concerning. The Q&A highlights competitive pressures and uncertainty around Big Lots, with management providing unclear responses on key issues. The revised revenue guidance and strong shareholder return plan offset some negatives. Given the company's market cap and these factors, a neutral stock price movement is expected over the next two weeks.
