News
Medallion Financial (MFIN) Second-Quarter Earnings Miss Estimates
Medallion Financial (MFIN) reported quarterly earnings of $0.30 per share, missing the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.62 per share last year. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -9.09%. A quarter ago, this business development company was expected to post earnings of $0.35 per share when it actually produced earnings of $0.42, delivering a surprise of 20%.
Over the past four quarters, the company has surpassed consensus EPS estimates twice.
Medallion Financial, which belongs to the Zacks Financial – SBIC & Commercial Industry industry, posted revenues of $50.97 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.16%. This compares to year-ago revenues of $48.63 million. The company has surpassed consensus revenue estimates three times in the last four quarters.
The sustainability of the stock’s immediate price movement based on recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.
Medallion Financial shares have lost about 18.2% since the start of the year, compared with the S&P 500’s gain of 14.5%.
What’s next for Medallion Financial?
While Medallion Financial has underperformed the market so far this year, the question that comes to investors’ minds is: What’s next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address it is the company’s earnings outlook. This includes not only current consensus earnings expectations for the upcoming quarter(s), but also how those expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track these revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Medallion Financial: mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. Therefore, the stock is expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
It will be interesting to see how the estimates for the upcoming quarters and the current fiscal year change in the coming days. The current consensus EPS estimate is $0.41 on $51.46 million in revenue for the upcoming quarter and $1.53 on $205.03 million in revenue for the current fiscal year.
The story continues
Investors should be aware of the fact that the outlook for the industry can have a material impact on stock performance as well. In terms of the Zacks Industry Rank, Financial – SBIC & Commercial Industry currently ranks in the top 42% of the 250+ Zacks industries. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Fidus Investment (FDUS), another stock in the same sector, has not yet released its results for the quarter ending in June 2024. The results are due to be released on August 1.
This privately held investment firm is expected to post quarterly earnings of $0.57 per share in its upcoming report, representing a year-over-year change of -8.1%. The consensus EPS estimate for the quarter has remained unchanged over the past 30 days.
Fidus Investment’s expected revenue is $34.88 million, up 14.1% from the year-ago quarter.
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Medallion Financial Corp. (MFIN): Free Stock Analysis Report
Fidus Investment Corporation (FDUS): Free Stock Analysis Report