Q: Hi, Could you please comment on Propel earnings. Do the results inspire more confidence to buy/add shares at current levels ? Thank You
5i Research Answer:
PRL raised its dividend by 8%. Adjusted EPS was 41c, beating estimates of 37C. GAAP EPS was 35c, beating estimates of 31c. Revenue of $96.5M matched estimates. Revenue rose 47%. EBITDA rose 73%. Net income rose 77%. EPS rose 81%. Return on equity was an impressive 49% vs 35% in the prior period. Loans increased 39%. The company noted 'strong demand' in a usually slow quarter. Credit quality remains high. At the time of this answer the conference call has not yet occurred, but things look fine here, and the growth rates are certainly most impressive. We would remain comfortable as buyers, with the usual small cap risk caveats.