adminBy Robb M. Stewart
Goeasy’s earnings and revenue topped expectations for the recent quarter after the consumer lender saw a record volume of applications for credit.
In morning trading, the shares were 7.1% higher at C$128.58, widening the advance so far this year to 21%.
The Canadian company, which provides non-prime leasing and lending services through its easyhome, easyfinancial and LendCare brands, recorded a rise in third-quarter net income to 66.3 million Canadian dollars ($48.2 million), or C$3.87 a share, from C$47.2 million, or C$2.86, a year earlier.
On an adjusted basis, adjusted earnings came in at C$3.81 a share, ahead of the C$3.46 mean estimate of analysts polled by FactSet.
Revenue was up 23% for the quarter at C$321.7 million, driven by an increase in interest income and commissions earned, as well as higher charges and fees. Analysts were expecting revenue of C$319.5 million for the period.
Goeasy generated a record C$722 million in loan originations in the quarter, up 13% from last year, thanks to a jump in applications for credit.
The company said it continued to experience stable credit and payment performance, with a net charge-off rate in the third quarter of 8.8%, down from 9.3% in same period last year and at the lower end of its projected range of between 8.5% and 9.5%.
Write to Robb M. Stewart at [email protected]
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