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Santander Consumer (SC) Lags Q4 Earnings & Revenue Estimates

Have you been eager to see how Santander Consumer USA Holdings Inc.SC performed in Q4 in comparison with the market expectations? Let's quickly scan through the key facts from this Texas-based technology-driven consumer finance company's earnings release this morning:

Earnings Lag

Santander Consumer came out with earnings per share of 17 cents, lagging the Zacks Consensus Estimate of 34 cents.

Lower-than-expected results were primarily due to a rise in total operating expenses.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Santander Consumer depicted pessimism prior to the earnings release. The Zacks Consensus Estimate has been revised downward by 5.6% over the last 7 days.

Also, Santander Consumer has a mixed record of earnings surprise history. The company had an average negative beat of 18.6% in the trailing four quarters.

Santander Consumer USA Holdings Inc. Price and EPS Surprise

Santander Consumer USA Holdings Inc. Price and EPS Surprise | Santander Consumer USA Holdings Inc. Quote

Revenue Came In Lower Than Expected

Santander Consumer posted revenues of $1.08 billion, which was below the Zacks Consensus Estimate of $1.58 billion. Also, it compared unfavorably with the year-ago number of $1.10 billion.

Key Statistics

  • Total originations: $4.7 billion
  • Net interest margin: 11.3%
  • Net charge-off ratio: 8.9%
  • Return on average equity: 4.7%
  • Return on average assets: 0.6%

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #4 (Sell) for Santander Consumer. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look unfavorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .)

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Santander Consumer USA Holdings Inc. (SC): 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.


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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