UPBD Earnings Prediction
The chart below shows how UPBD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, UPBD sees a -3.34% change in stock price 10 days leading up to the earnings, and a +3.93% change 10 days following the report. On the earnings day itself, the stock moves by +1.33%. This data can give you a slight idea of what to expect for the next quarter's release.
UPBD Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.07B
9.17%
-0.71%
Gross Margin
46.62%
-5.80%
-3.36%
Operating Margin
7.58%
10.01%
-5.96%
Net Margin
2.89%
542.22%
-8.25%
EPS
0.55
587.50%
-9.84%
No Data Available
UPBD Earnings Analysis
Upbound Group, Inc. Common Stock Corporation (UPBD.O) Earnings Conference Call
Positive
Quarterly Revenue Increase: 1. Strong Revenue Growth: Upbound Group reported third quarter revenue of nearly $1.1 billion, reflecting a year-over-year increase of 9.2%.
GMV Growth Achievement: 2. Acima's Impressive GMV Growth: Acima achieved a 13% increase in Gross Merchandise Volume (GMV) year-over-year, marking its fourth consecutive quarter of growth in this metric.
Non-GAAP EPS Growth: 3. Increased Non-GAAP EPS: The company reported a non-GAAP earnings per share of $0.95, representing a 20% growth compared to the prior year.
Adjusted EBITDA Margin Increase: 4. Improved Adjusted EBITDA Margins: Rent-A-Center's adjusted EBITDA margin increased by 130 basis points year-over-year to 16.3%, demonstrating effective cost management and operational efficiency.
Cash Liquidity Strength: 5. Strong Cash Position: Upbound Group ended the quarter with liquidity approaching $600 million, positioning the company well for future growth opportunities.
Negative
Lease Charge-Off Rate Increase: 1. Increased Lease Charge-Off Rates: The consolidated lease charge-off rate rose to 7.4%, a 40 basis point increase from the prior year, indicating a deterioration in credit quality across the portfolio.
Gross Margin Decline: 2. Declining Gross Margins: Consolidated gross margin decreased by 300 basis points year-over-year to 47.8%, with Acima's gross margin contracting by 280 basis points, reflecting pressure from increased merchandise sales and trade-down dynamics.
Increased Lease Charge-Offs: 3. Higher Delinquency Rates: Rent-A-Center's lease charge-off rate increased to 4.9%, up 60 basis points year-over-year, highlighting challenges in managing customer credit risk amid a tough economic environment.
Rising Operating Costs: 4. Increased Operating Costs: Non-GAAP operating costs for Acima rose by approximately $4.3 million in Q3, despite being lower as a percentage of revenue, indicating ongoing pressure on profitability.
Legal Settlement Expense: 5. Legal Settlement Accrual: The company incurred an estimated settlement expense of $7.5 million related to ongoing legal matters, which could impact future financial performance and cash flow.
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UPBD Earning Call Sentiment
Upbound Group, Inc. (UPBD) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
UPBD.O
-1.87%Positive
The earnings call reveals strong financial performance with revenue growth, improved EBITDA margins, and raised guidance. Despite some concerns about trade-down activity affecting margins and pending regulatory changes, the company expects margin normalization and growth in 2025. The Q&A section shows management's confidence in handling challenges, and the expansion plan into Mexico suggests growth potential. The market cap indicates moderate sensitivity to earnings news, leading to a predicted stock price increase of 2% to 8% over the next two weeks.