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What's in Store for Regional Management (RM) in Q1 Earnings?

Zacks Equity Research
·4 min read

Regional Management Corp. RM is slated to report first-quarter 2020 results on May 6, after market close. Its earnings and revenues for the to-be-reported quarter are expected to have risen year over year.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were aided by growth in revenues, partially offset by higher expenses.

The company boasts an impressive earnings surprise history. Its earnings surpassed the consensus estimate in three of the trailing four quarters, the average beat being 7.3%.

Regional Management Corp. Price and EPS Surprise

 

Regional Management Corp. Price and EPS Surprise
Regional Management Corp. Price and EPS Surprise

Regional Management Corp. price-eps-surprise | Regional Management Corp. Quote

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However, the Zacks Consensus Estimate for earnings of 75 cents for the to-be-reported quarter has been unchanged over the past 30 days. Nevertheless, it indicates a rise of 11.9% from the year-ago quarter’s reported figure.

The consensus estimate for sales is pegged at $94 million, indicating growth of 15% from the year-ago quarter’s reported figure.

Key Estimates for Q1

The Zacks Consensus Estimate for net insurance income is pegged at $4.2 million for the first quarter, which indicates 1.5% growth year over year. Moreover, the consensus estimate for interest and fee income of $86 million suggests a rise of 16.2% from the prior-year quarter’s reported figure.

However, on the last reported quarter’s earnings call, the company disclosed that the adoption of a current expected credit loss model on Jan 1, 2020, adversely impacted the net income by $1.3 million, which will get reflected in first-quarter 2020 results.

Overall expenses are likely to have remained elevated in the first quarter mainly due to continued increase in personnel expenses.

Earnings Whispers

Now, let’s check what our quantitative model predicts.

According to our quantitative model, chances of Regional Management beating the Zacks Consensus Estimate in the first quarter are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Regional Management is 0.00%.

Zacks Rank: The company currently carries a Zacks Rank #2 (Buy).

Stocks That Warrant a Look

Here are some finance stocks that you may want to consider, as according to our model, these have the right combination of elements to post an earnings beat this quarter.

Ameriprise Financial, Inc. AMP is scheduled to release results on May 6. The company currently has an Earnings ESP of +9.63% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Ares Management L.P. ARES is likely to release earnings figures around May 6. The company, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +3.52%.

Virtu Financial, Inc. VIRT is slated to report quarterly earnings on May 7. The company, which flaunts a Zacks Rank of 1 at present, has an Earnings ESP of +39.67%.

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Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report
 
Regional Management Corp. (RM) : Free Stock Analysis Report
 
Virtu Financial, Inc. (VIRT) : Free Stock Analysis Report
 
Ares Management L.P. (ARES) : Free Stock Analysis Report
 
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Zacks Investment Research