Pagaya (PGY) to Report Q1 Earnings: What's in the Offing?

PagayaTechnologies Ltd. PGY is scheduled to release its first-quarter 2024 results on May 9, before market open.

The company’s earnings surprise history has not been impressive. It missed the Zacks Consensus Estimate in three of the trailing four quarters and met in one instance, delivering a negative earnings surprise of 108.3%, on average.

Pagaya Technologies Ltd. Price and EPS Surprise

 

Pagaya Technologies Ltd. Price and EPS Surprise

Pagaya Technologies Ltd. price-eps-surprise | Pagaya Technologies Ltd. Quote

Q1 Expectations

The Zacks Consensus Estimate for the top line is pegged at $229.5 million, indicating a 23% increase from the year-ago quarter’s actual.

The increase in revenues is likely to have been caused by a rise in fee revenues that represents most of the total revenues. Growth in fee revenues less production costs are likely to have been driven by the company’s robust fee-generating business.

The Zacks Consensus Estimate for earnings is pegged at 16 cents per share, indicating an increase of more than 100% from the year-ago quarter’s actual. We expect growth in the bottom line to have been driven by disciplined cost management that improves operating efficiency.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for PGY this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Pagaya has an Earnings ESP of -29.79% and a Zacks Rank of 3 at present.

Stocks to Consider

Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

Stantec STN: The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $999.1 million, implying 10% year-over-year growth. The consensus estimate for earnings is pegged at 83 cents per share, suggesting a 16.7% rise from the year-ago quarter’s actual. The company has an average surprise of 4.8%.

STN currently has an Earnings ESP of +3.18% and a Zacks Rank of 3. The company is scheduled to declare its first-quarter results on May 8. You can see the complete list of today’s Zacks #1 Rank stocks here.

Maximus MMS: The Zacks Consensus Estimate for the company’s second-quarter fiscal 2024 revenues is pegged at $1.3 million, implying 10% growth from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at $1.3 per share, suggesting an increase of 63.8% from the year-ago quarter’s actual. The company has an average negative surprise of 7%.

MMS currently has an Earnings ESP of +1.53% and a Zacks Rank of 2. The company is scheduled to post its first-quarter results on May 8.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Stantec Inc. (STN) : Free Stock Analysis Report

Maximus, Inc. (MMS) : Free Stock Analysis Report

Pagaya Technologies Ltd. (PGY) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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