Have you been eager to see how Santander Consumer USA Holdings Inc. (SC) performed in Q4 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 69 cents, beating the Zacks Consensus Estimate of 56 cents.
Strong top line growth was primarily responsible for this earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Santander Consumer depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained unchanged over the last 7 days.
However, Santander Consumer has a decent earnings surprise history. Before posting an earnings beat in Q4, the company delivered positive surprises in two of the prior three quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 0.85% in the trailing four quarters.
Revenue Came In Lower Than Expected
Santander Consumer posted revenues of $1.21 billion, which significantly missed the Zacks Consensus Estimate of $1.49 billion. However, it compared favorably with the year-ago number of $1.06 billion.
Key Statistics to Note:
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Total originations were $6.1 billion in Q4, up from $5.8 billion in prior-year quarter
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Return on average equity was 29.1%, up from 17.3% in prior-year quarter
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Return on average assets of 3.1% was up from 1.8% in prior-year quarter
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) 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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