Open Lending's Earnings Outlook

Open Lending LPRO is preparing to release its quarterly earnings on Monday, 2025-03-31. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Open Lending to report an earnings per share (EPS) of $0.02.

Open Lending bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

During the last quarter, the company reported an EPS missed by $0.04, leading to a 12.59% drop in the share price on the subsequent day.

Here's a look at Open Lending's past performance and the resulting price change:

Performance of Open Lending Shares

Shares of Open Lending were trading at $2.92 as of March 27. Over the last 52-week period, shares are down 52.1%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Analyst Observations about Open Lending

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Open Lending.

The consensus rating for Open Lending is Buy, derived from 2 analyst ratings. An average one-year price target of $5.35 implies a potential 83.22% upside.

Understanding Analyst Ratings Among Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Coincheck Group, Donnelley Financial Solns and MarketAxess Holdings, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Coincheck Group, with an average 1-year price target of $10.0, suggesting a potential 242.47% upside.
• Donnelley Financial Solns received a Buy consensus from analysts, with an average 1-year price target of $73.75, implying a potential 2425.68% upside.
• MarketAxess Holdings is maintaining an Neutral status according to analysts, with an average 1-year price target of $244.57, indicating a potential 8275.68% upside.

Analysis Summary for Peers

The peer analysis summary presents essential metrics for Coincheck Group, Donnelley Financial Solns and MarketAxess Holdings, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Open Lending ranks at the bottom for Revenue Growth and Gross Profit, indicating lower performance in these areas compared to its peers. However, it is at the top for Return on Equity, showcasing strong profitability relative to others. The Consensus rating suggests a positive outlook for the company.

Unveiling the Story Behind Open Lending

Open Lending Corp is engaged in providing automated lending services to financial institutions. The company offers loan analytics, risk-based pricing, risk modeling, and automated decision technology. Its Lenders Protection Program ("LPP") enables automotive lenders to make loans that are largely insured against losses from defaults.

Key Indicators: Open Lending's Financial Health

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Open Lending's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -9.73%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: Open Lending's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 6.12%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Open Lending's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.66% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Open Lending's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.37%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Open Lending's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.66.

To track all earnings releases for Open Lending visit their earnings calendar on our site.

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