Digital small business lender Live Oak Bancshares (NYSE:LOB) will be announcing earnings results this Wednesday afternoon. Here’s what you need to know.
Live Oak Bancshares missed analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $126.1 million, up 8.5% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates.
Is Live Oak Bancshares a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Live Oak Bancshares’s revenue to grow 11.5% year on year to $140 million, slowing from the 15.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 per share.
Live Oak Bancshares Total Revenue The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Live Oak Bancshares has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Live Oak Bancshares’s peers in the regional banks segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Texas Capital Bank delivered year-on-year revenue growth of 15.2%, beating analysts’ expectations by 2.7%, and Nicolet Bankshares reported revenues up 12.7%, topping estimates by 4.4%. Texas Capital Bank traded up 4.8% following the results while Nicolet Bankshares was also up 7.8%.
Read our full analysis of Texas Capital Bank’s results here and Nicolet Bankshares’s results here.
There has been positive sentiment among investors in the regional banks segment, with share prices up 7.8% on average over the last month. Live Oak Bancshares is up 9% during the same time and is heading into earnings with an average analyst price target of $32.50 (compared to the current share price of $31.86).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
