PROG Holdings Inc. Up 3.1% To $14.64 After Earnings Beat

PROG Holdings Inc (PRG) beat out earnings estimates for Q3 2022 this morning.

The consensus among analysts for PROG Holdings Inc. was for an earnings per share (EPS) of $0.67. The firm was able to surpass those projections, reporting an EPS of $0.68, a positive surprise of $0.01 (1%). Profits fell 28% year-over-year after reporting an EPS of $0.94 in its year-ago quarter. The negative growth rate signals that the Industrials company isn't performing well amid current economic conditions.

Consensus analyst estimates were at $633.8 million. The Industrials company missed on those expectations for its third quarter with revenue of $625.8 million, a negative revenue surprise of $8 million (1%). The firm managed negative 4% growth year-over-year due to PROG Holdings Inc. reporting quarterly revenue of $650.4 million in its year-ago quarter. PROG Holdings Inc. achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is up 3.1% to $14.64 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 52. Meanwhile, the average Wall Street analyst rated the stock a Buy.

PROG Holdings Inc is a provider of lease-purchase solutions through more than 30,000 retail partner locations in 46 states and the district of Columbia, including e-commerce merchants. The firm operates in two segments Progressive Leasing and Vive Financial. The majority of the firm's revenue is derived from the Progressive Leasing segment that offers lease-to-own transactions mainly to credit-challenged consumers, through point-of-sale and e-commerce retail partners, via in-store, mobile, and online solutions.