Overview

* Regional Management ( RM ) Q2 revenue rises 10% yr/yr, beating analyst expectations

* Net income for Q2 grows 20% yr/yr to $10.1 mln

* Co achieves record originations and portfolio growth, improving credit performance

Outlook

* Regional Management ( RM ) targets at least 10% portfolio growth in 2025

* Company plans to open 5 to 10 new branches in coming months

* Company expects continued growth in auto-secured and small loan portfolios

Result Drivers

* RECORD ORIGINATIONS - Co attributes record revenue to record loan originations and 10.5% portfolio growth

* CREDIT PERFORMANCE - Improved credit performance with lower delinquency and net credit loss rates, per CEO Robert Beck

* OPERATING EFFICIENCY - Achieved an all-time best operating expense ratio of 13.2%

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $157.44 $151.80

Revenue mln mln (6

Analysts

)

Q2 EPS $1.03

Q2 Net $10.14

Income mln

Q2 $60.59

Credit mln

Loss

Provisio

n

Q2 $140.70

Interest mln

& Fee

Income

Q2 $13.48

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the consumer lending peer group is "buy"

* Wall Street's median 12-month price target for Regional Management Corp ( RM ) is $40.00, about 22% above its July 29 closing price of $31.19

* The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)