NASDAQ$MFIN

Medallion Financial Corp · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Medallion Financial's first quarter results were announced, showing a significant increase in net income and strong performance in consumer lending segments.

Medallion Financial Corp. reported a net income of $8.4 million for the first quarter of 2021, a significant improvement compared to the net loss of $13.6 million in the same quarter of the previous year. The company experienced growth in its consumer lending segments and an increase in net interest income, driven by the performance of these segments. Additionally, consumer originations increased by 37% compared to the prior year quarter.

  • Net income was $8.4 million, or $0.34 per share, compared to a net loss of $13.6 million, or $0.56 per share, in the prior year quarter.
  • Net interest income increased to $28.7 million, primarily due to the contribution of the consumer lending segments.
  • Consumer originations grew by 37% to $142.0 million.
  • Total assets reached $1.7 billion as of March 31, 2021.

Headline financials

Total Revenue

$30.6M

Previous: $19.6M+56.5%
EPS (adj)

$0.29

Previous: -$0.56+151.8%
Net Income

$8.43M

Previous: -$13.6M+161.8%
Operating Income

$18.6M

Previous: -$13.2M+240.9%
Gross Profit

$27.6M

Previous: $3.02M+813.3%
Cash & Equivalents

$69.5M

Previous: $15.8M+339.3%
Total Assets

$1.69B

Previous: $1.53B+10.1%
Stock-Based Comp

$498K

Previous: $466K+6.9%

Revenue & EPS history

Medallion · Revenue · Quarterly

$30.6M

Q1 2021+56.5%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Medallion · $172M total across 2 segments · Q3 2023

  • Recreation Lending
    $92.6M
  • Home Improvement Lending
    $79.3M

Forward guidance

Medallion Financial is optimistic about future performance, focusing on consumer lending segments and fintech partnerships. They anticipate long-term value creation for shareholders through expense monitoring and strategic initiatives.

Tailwinds

  • Continued strong underlying performance from consumer lending segments.
  • Medallion Bank's recreation lending segment achieved its highest volume to date in March.
  • Low consumer charge-offs and delinquencies were recorded during the quarter.
  • The company is taking steps to monitor expenses and produce long-term value for shareholders.
  • A second fintech partnership will soon be active, with updates to be provided throughout the year.

Headwinds

  • Forward-looking statements involve risks and uncertainties.
  • Actual results may differ significantly from expectations.
  • The COVID-19 pandemic could have impacts that differ materially from current expectations.
  • Factors beyond Medallion’s control could affect future developments.
  • Medallion is subject to risks described in the 2020 Annual Report on Form 10-K.

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 Q1 2021

Historical avgQ1 2021

+1.5%

Avg return

Earnings day

+3.1%

Avg return

5 days after

+3.7%

Avg return

30 days after

63%

25 / 40 earnings

Positive

+30.1%

Q3 2016

Best reaction

-32.4%

Q2 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.0%+0.1%+5.0%
Q4 2025-2.0%-5.0%-21.2%
Q3 2025+1.7%-0.1%+1.3%
Q1 2025+0.3%+0.8%+3.8%
Q4 2024+7.2%+9.7%+0.6%
Q3 2024+2.0%+4.5%+2.5%
Q2 2024+2.9%-1.9%+0.1%
Q1 2024-1.1%+1.5%+6.8%
Q4 2023-10.7%-6.5%-12.3%
Q3 2023+11.8%+29.9%+44.6%
Q2 2023+7.1%+14.6%+1.0%
Q1 2023+5.7%+3.0%+6.7%
Q4 2022+4.8%+2.8%-2.3%
Q3 2022+5.0%+2.1%+1.8%
Q2 2022+10.3%+11.8%+32.6%
Q1 2022+10.5%+4.0%+2.6%
Q4 2021+11.9%+18.2%+28.9%
Q3 2021+6.2%+4.9%-9.6%
Q2 2021+2.4%+2.0%-0.7%
Q1 2021+3.9%+5.5%+6.1%
Q4 2020+1.5%+2.5%+9.1%
Q3 2020+9.1%+19.0%+111.0%
Q2 2020-4.9%-4.6%-9.1%
Q1 2020-21.5%-29.0%-20.5%
Q4 2019+0.0%-6.5%-57.1%
Q3 2019+1.3%+3.0%-5.6%
Q2 2019-8.5%-7.1%-4.5%
Q1 2019+0.7%+5.3%-10.4%
Q1 2016-4.4%-7.2%+5.5%
Q4 2018+2.2%-0.7%-0.6%
Q3 2018-9.1%-12.9%-18.9%
Q2 2018-4.9%-6.2%-4.0%
Q1 2018+19.1%+41.5%+51.3%
Q4 2017-2.0%-1.3%+2.4%
Q3 2017+4.4%+21.8%+22.3%
Q2 2017-10.7%-7.9%-7.5%
Q1 2017-0.5%+6.4%+14.2%
Q4 2016+10.0%+12.8%+6.1%
Q3 2016+30.1%+13.8%+8.9%
Q2 2016-32.4%-21.5%-43.4%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro