Upstart to report Q2 earnings tomorrow (NASDAQ:UPST)

Upstart (NASDAQ:UPST) is scheduled to announce Q2 earnings results on Tuesday, August 8th, after market close.

The consensus EPS estimate is -$0.07 and the consensus revenue estimate is $135.32M (-40.7% Y/Y).

Over the last 2 years, UPST has beaten EPS estimates 75% of the time and revenue estimates 75% of the time.

Over the last 3 months, EPS estimates have seen 8 upward revisions and 3 downward revisions. Revenue estimates have seen 8 upward revisions and 1 downward revision.

Past results:

Q1 EPS of $0.61, and revenue of $103M (-66.8% Y/Y) beats by $3.25M.

The AI-powered lending platform posted better-than-expected Q1 earnings, issued strong Q2 guidance, and secured more than $2B in funding agreements. Those agreements, “as well as others in the pipeline, will provide us with a stronger and more resilient capital supply over the coming quarters,” CFO Sanjay Datta had said during the company’s earnings call.

Peer performance:

OneMain Holdings delivered Q2 earnings that fell short of the average analyst estimate and dropped during the quarter. Q2 Non-GAAP EPS of $1.01 misses by $0.26. Revenue of $1.06B (+3.9% Y/Y) beats by $10M.

FirstCash Q2 Non-GAAP EPS of $1.22 beats by $0.14. Revenue of $750.62M (+13.9% Y/Y) beats by $18.72M.

Credit Acceptance Q2 Non-GAAP EPS of $10.69 beats by $0.90. Revenue of $477.9M (+4.5% Y/Y) beats by $14.07M.

Analyst thoughts:

BTIG analyst Lance Jessurun said he sees a good chance that Upstart turns in stronger-than-expected Q2 revenue. Jessurun expects revenue to exceed guidance and consensus by ~$10M. The analyst gives the stock a Buy rating.

Upstart experienced a significant stock plunge due to rising interest rates impacting credit markets and its loan approval process. The company has since secured $2 billion in committed funding agreements and a $4 billion agreement with Castlelake to ensure loan approvals have pre-pledged capital. The Castlelake deal indicate a positive investor response to the company’s strategic adjustments, according to Seeking Alpha analyst Wealth Insights.

Ratings action:

Sell-side analysts give the stock a Sell rating on average, with an average price target of $22.86. The stock is currently trading at $52.58.

SA analysts give the stock a Buy rating, while the Quant Rating system gives the stock a Hold rating.

Here is a look at the company’s YTD share price movements: