Financial technology company PROG Holdings (NYSE: PRG) will be reporting results this Wednesday morning. Here’s what to look for.
PROG missed analysts’ revenue expectations last quarter, reporting revenues of $574.6 million, down 5.2% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and full-year EPS guidance exceeding analysts’ expectations.
Is PROG a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PROG’s revenue to grow 8.3% year on year, improving from the 6.6% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PROG has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at PROG’s peers in the financial services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. WEX delivered year-on-year revenue growth of 5.8%, meeting analysts’ expectations, and Western Union reported flat revenue, topping estimates by 1.1%. WEX traded down 16.3% following the results while Western Union’s stock price was unchanged.
Read our full analysis of WEX’s results here and Western Union’s results here.
There has been positive sentiment among investors in the financial services segment, with share prices up 13% on average over the last month. PROG is up 6.6% during the same time and is heading into earnings with an average analyst price target of $41.79 (compared to the current share price of $30.29).
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