NYSE$PRG

Prog Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Exceeded expectations and raised full-year financial outlook.

PROG Holdings reported consolidated revenues of $592.8 million and net earnings of $37.2 million for Q2 2023. The company's adjusted EBITDA increased by 44% year-over-year to $75.0 million, and diluted EPS was $0.79, with non-GAAP diluted EPS reaching $0.92, a 76.9% increase year-over-year.

  • Consolidated revenues reached $592.8 million.
  • Earnings before taxes totaled $52.0 million.
  • Adjusted EBITDA increased 44% year-over-year to $75.0 million.
  • Non-GAAP Diluted EPS increased 76.9% year-over-year to $0.92.

Headline financials

Total Revenue

$593M

Previous: $649M-8.7%
EPS (adj)

$0.92

Previous: $0.52+76.9%
Adjusted EBITDA

$75M

No prior period
Capital Expenditures

-$4.39M

Previous: -$5.49M+20.1%
Free Cash Flow

$32.8M

Previous: $14M+134.7%
Net Income

$37.2M

Previous: $19.5M+91.0%
Operating Income

$59.3M

Previous: $36.9M+60.5%
Gross Profit

$485M

Previous: $587M-17.4%
Cash & Equivalents

$253M

Previous: $127M+98.6%
Total Assets

$1.48B

Previous: $1.48B+0.3%
Stock-Based Comp

$6.85M

Previous: $2.42M+183.2%

Revenue & EPS history

Prog Holdings · Revenue · Quarterly

$593M

Q2 2023-8.7%vs Q2 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Prog Holdings · $576M total across 2 segments · Q2 2023

  • Progressive Leasing
    $575M-8.9%
  • Other
    $820K+40.9%

Forward guidance

The Company is revising upwards its full year earnings and revenue outlook and providing a Q3 2023 outlook for revenues, net earnings, adjusted EBITDA, GAAP diluted EPS, and non-GAAP diluted EPS.

Tailwinds

  • Improved gross margins from strong portfolio management are expected to continue.
  • Total Revenues between $2,360,000 and $2,390,000
  • Net Earnings between $125,500 and $133,000
  • Adjusted EBITDA between $270,000 and $280,000
  • Diluted EPS between $2.64 and $2.80

Headwinds

  • Assumes a difficult operating environment with continued soft demand for consumer durable goods.
  • Assumes no material changes in the Company's decisioning posture or portfolio performance.
  • Assumes no impact from additional share purchases.
  • Total Revenues between $560,000 and $575,000 for Q3 2023
  • Net Earnings between $21,500 and $25,500 for Q3 2023

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 Q2 2023

Historical avgQ2 2023

+0.6%

Avg return

Earnings day

+3.2%

Avg return

5 days after

+5.3%

Avg return

30 days after

57%

36 / 63 earnings

Positive

+24.2%

Q1 2020

Best reaction

-43.1%

Q1 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%+24.2%+26.6%
Q4 2025+6.6%+12.7%-18.1%
Q3 2025-0.8%-3.5%-14.1%
Q1 2025-7.0%-2.6%+6.5%
Q3 2024-8.7%-8.6%+1.0%
Q2 2024+22.2%+29.9%+36.4%
Q1 2024+6.6%+5.2%+8.3%
Q4 2023-11.3%-9.2%+6.7%
Q3 2023-0.4%-2.6%-4.4%
Q2 2023+14.9%+11.9%-7.3%
Q1 2023+17.6%+17.2%+29.6%
Q4 2022+5.9%+8.4%+1.2%
Q3 2022+11.8%+16.3%+33.3%
Q2 2022+8.3%+16.3%+10.7%
Q1 2022+2.0%+2.4%+6.3%
Q4 2021-12.8%-14.2%-19.1%
Q3 2021+13.0%+14.0%+9.6%
Q2 2021-3.7%-6.0%+5.1%
Q1 2021+3.1%+8.4%+6.7%
Q4 2020+0.8%-2.2%-9.3%
Q3 2020-4.5%+1.6%+18.2%
Q2 2020+16.8%+14.2%+26.0%
Q1 2020+24.2%+14.2%+58.2%
Q4 2019-22.8%-24.0%-73.3%
Q3 2019-11.6%-21.3%-22.1%
Q2 2019-1.4%-2.8%-4.4%
Q1 2019+7.1%+4.5%+2.2%
Q4 2018+5.2%+4.6%+2.5%
Q3 2018-6.0%-4.6%+0.9%
Q2 2018-0.1%-0.5%+16.0%
Q1 2018-7.4%-10.7%-9.5%
Q4 2017+7.6%+5.5%+19.8%
Q3 2017-12.2%-14.9%-16.1%
Q2 2017+13.9%+13.1%+8.8%
Q1 2017+14.4%+16.2%+11.9%
Q4 2016-8.6%-8.3%+1.9%
Q3 2016+9.2%+9.6%+30.8%
Q2 2016+9.8%+8.5%+12.7%
Q1 2016+3.9%
Q4 2015-6.0%
Q3 2015-24.3%
Q2 2015-9.2%
Q1 2015+14.5%
Q4 2014+1.6%
Q3 2014-4.1%
Q2 2014+0.8%
Q1 2014+0.6%
Q4 2013+0.4%
Q3 2013+0.2%
Q2 2013+1.4%
Q1 2013-1.3%
Q4 2012+3.8%
Q3 2012-1.2%
Q2 2012+0.8%
Q1 2012+0.7%
Q4 2011-0.2%
Q3 2011-4.2%
Q2 2011+2.3%
Q1 2011+1.7%
Q4 2010+2.2%
Q3 2010-1.4%
Q2 2010-4.7%
Q1 2010-43.1%

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