NASDAQ$ATLC

Atlanticus Holdings Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong profitability, attractive return on capital, and reasonable growth.

Atlanticus reported a 6.1% increase in total operating revenue, reaching $294.9 million, and a net income attributable to common shareholders of $18.9 million, or $1.03 per diluted share. Managed receivables increased by 12.9% to $2.3 billion.

  • Managed receivables increased 12.9% to $2.3 billion.
  • Total operating revenue increased 6.1% to $294.9 million.
  • Net income attributable to common shareholders was $18.9 million, or $1.03 per diluted share.
  • Over 380,000 new accounts were served during the quarter, with over 3.4 million total accounts serviced.

Headline financials

Total Revenue

$295M

Previous: $278M+6.1%
EPS (adj)

$1.03

Previous: $1.41-27.0%
Purchase Volume

$707M

Previous: $0.00
Capital Expenditures

-$111K

No prior period
Free Cash Flow

$25.2M

Previous: $32.6M-22.5%
Net Income

$25.2M

Previous: $32.6M-22.5%
Operating Income

$256M

Previous: $242M+5.9%
Gross Profit

$269M

Previous: $253M+6.3%
Cash & Equivalents

$400M

No prior period
Total Assets

$2.6B

Previous: $2.25B+15.3%
Stock-Based Comp

$908K

Previous: $930K-2.4%

Revenue & EPS history

Atlanticus · Revenue · Quarterly

$295M

Q3 2023+6.1%vs Q3 2022
Beat estimate in 4 of 13 quarters(31%)
ActualEstimate

Forward guidance

Atlanticus anticipates continued increases in operating expenses for the remainder of 2023, driven by growth in the number of consumers served and additional hiring. They also expect net period-over-period growth in total interest income and related fees for the fourth quarter of 2023, albeit at a decreased growth rate compared to 2022. Further increases in quarterly interest expense are expected due to additional debt financing and increased effective interest rates.

Tailwinds

  • Expect net period-over-period growth in total interest income and related fees for the fourth quarter of 2023.
  • The company's diverse array of industry segments served and continued product enhancements allow it to bring greater value to its partners by serving more of their customers.
  • Conservative underwriting has led to a meaningful reduction in portfolio delinquency compared to the same period last year.
  • Ample liquidity and well-structured balance sheet position the company for long-term sustained growth.
  • Growth across each of the company's product offerings.

Headwinds

  • Some retail credit partners have experienced volume reductions.
  • Expect the pace of growth to slow near-term due to tightened underwriting standards.
  • Anticipate additional debt financing over the next few quarters, coupled with increased effective interest rates.
  • Expect continued increases in operating expenses for the remainder of 2023.
  • Recent increases in the federal funds rate have started to increase interest expense.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+1.7%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+11.7%

Avg return

30 days after

52%

33 / 64 earnings

Positive

+22.3%

Q4 2013

Best reaction

-21.8%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.7%-0.7%+7.5%
Q4 2025-9.0%+0.5%+20.2%
Q3 2025-5.6%-1.2%+17.7%
Q1 2025-3.3%-7.8%-1.9%
Q4 2024+0.2%-1.4%+6.5%
Q3 2024+6.9%+6.5%+51.3%
Q2 2024+5.1%+12.0%+8.2%
Q1 2024-2.6%-12.3%-8.0%
Q4 2023-8.1%-6.8%-12.8%
Q3 2023+2.9%-0.1%+2.0%
Q2 2023-7.7%-6.6%-14.9%
Q1 2023+2.7%+5.0%+35.8%
Q4 2022-2.3%-12.6%+13.1%
Q3 2022-4.6%+13.5%+4.6%
Q2 2022-4.0%-7.0%-27.0%
Q1 2022-21.8%-13.8%-8.0%
Q4 2021+17.0%+32.7%-3.3%
Q3 2021-8.1%-8.7%-28.1%
Q2 2021+3.0%+2.1%+16.2%
Q1 2021+17.4%+32.0%+37.7%
Q4 2020+9.8%+1.9%+12.8%
Q3 2020+20.4%+7.3%+59.9%
Q2 2020+7.4%+11.6%+41.9%
Q1 2020-10.7%-11.0%+57.8%
Q4 2019-1.1%-9.5%+59.5%
Q3 2019+2.6%+7.3%+15.2%
Q2 2019+11.8%+37.9%+33.2%
Q1 2019+3.9%+3.8%+3.2%
Q4 2018+0.3%-0.8%-3.1%
Q3 2018-3.7%-6.6%-7.2%
Q2 2018-6.0%+6.3%+60.6%
Q1 2018+5.0%-1.5%+9.3%
Q4 2017+5.0%-1.5%+9.3%
Q3 2017+4.7%+13.5%+11.2%
Q2 2017-2.4%-0.8%-10.4%
Q4 2016+0.0%+1.5%-1.9%
Q1 2017+0.0%+1.5%-1.9%
Q3 2016-4.4%-5.3%-11.6%
Q2 2016+0.0%-1.7%+2.4%
Q1 2016+0.3%
Q4 2015-4.8%
Q3 2015-1.3%
Q2 2015+1.3%
Q1 2015-3.5%
Q4 2014-3.5%
Q3 2014+12.7%
Q2 2014-0.7%
Q1 2014+18.5%
Q4 2013+22.3%
Q3 2013+3.6%
Q2 2013-0.3%
Q1 2013+8.7%
Q4 2012-0.3%
Q3 2012-3.8%
Q2 2012-1.0%
Q1 2011+4.7%
Q1 2012+0.7%
Q4 2011+7.3%
Q3 2011-0.3%
Q3 2010-0.3%
Q2 2011+7.5%
Q2 2010+7.5%
Q4 2010+7.5%
Q1 2010+3.6%

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