Santander Consumer (SC) Beats Q1 Earnings & Revenue Estimates
Zacks Investment Research | Apr 26, 2017 06:44AM ET
Have you been eager to see how Santander (MC:SAN) Consumer USA Holdings Inc. (NYSE:SC) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this Texas-based technology-driven consumer finance company’s earnings release this morning:
An Earnings Beat
Santander Consumer came out with earnings per share of 40 cents, beating the Zacks Consensus Estimate of 36 cents. Better-than-expected results were primarily due to fall in provisions and elevated total finance and other interest income.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Santander Consumer remained stable prior to the earnings release. The Zacks Consensus Estimate has remained unchanged over the last 7 days.
Also, Santander Consumer has a mixed record of earnings surprise history. The company had an average negative beat of 13.1% in the trailing four quarters.
Revenue Came In Higher Than Expected
Santander Consumer posted revenues of $1.69 billion, which was above the Zacks Consensus Estimate of $1.59 billion. Yet, it compared unfavorably with the year-ago number of $1.70 billion.
Key Stats to Note:
- Total originations: $5.4 billion
- Net interest margin: 11.2%
- Net charge-off ratio: 8.8%
- Return on average equity: 10.8%
- Return on average assets: 1.5%
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Santander Consumer. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
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