What's Next: Upstart Hldgs's Earnings Preview

Upstart Hldgs UPST is gearing up to announce its quarterly earnings on Thursday, 2024-11-07. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Upstart Hldgs will report an earnings per share (EPS) of $-0.15.

The market awaits Upstart Hldgs's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings Track Record

The company's EPS beat by $0.23 in the last quarter, leading to a 39.51% increase in the share price on the following day.

Here's a look at Upstart Hldgs's past performance and the resulting price change:

Performance of Upstart Hldgs Shares

Shares of Upstart Hldgs were trading at $50.6 as of November 05. Over the last 52-week period, shares are up 149.53%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on Upstart Hldgs

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Upstart Hldgs.

Analysts have provided Upstart Hldgs with 4 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $39.5, suggesting a potential 21.94% downside.

Comparing Ratings with Competitors

In this comparison, we explore the analyst ratings and average 1-year price targets of Credit Acceptance and Enova International, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Credit Acceptance is maintaining an Sell status according to analysts, with an average 1-year price target of $380.0, indicating a potential 650.99% upside.
• Analysts currently favor an Buy trajectory for Enova International, with an average 1-year price target of $101.6, suggesting a potential 100.79% upside.

Comprehensive Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Credit Acceptance and Enova International, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Upstart Hldgs ranks highest in Revenue Growth among its peers. It is in the middle for Gross Profit and Return on Equity.

Discovering Upstart Hldgs: A Closer Look

Upstart Holdings Inc provides credit services. The company provides a proprietary, cloud-based, artificial intelligence lending platform. The platform aggregates consumer demand for loans and connects it to the network of Upstart AI-enabled bank partners. Upstart's platform includes personal loans, automotive retail and refinance loans, home equity lines of credit and small dollar loans.

Key Indicators: Upstart Hldgs's Financial Health

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Upstart Hldgs faced challenges, resulting in a decline of approximately -5.99% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Upstart Hldgs's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -42.68%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -9.02%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -2.91%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.63.

To track all earnings releases for Upstart Hldgs visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.