Q2 Rundown: Happen Bank (NASDAQ:HAPN) Vs Other Personal Loan Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Happen Bank (NASDAQ:HAPN) and its peers.
Personal loan providers offer unsecured credit for various consumer needs. The sector benefits from digital application processes, increasing consumer comfort with online financial services, and opportunities in underserved credit segments. Headwinds include credit risk management in unsecured lending, regulatory oversight of lending practices, and intense competition affecting margins from both traditional and fintech lenders.
The 7 personal loan stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.2%.
While some personal loan stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.6% since the latest earnings results.
Happen Bank (NASDAQ:HAPN)
Pioneering peer-to-peer lending in the US before evolving into a digital bank, Happen Bank (NASDAQ:HAPN) operates a marketplace that connects borrowers with lenders, offering personal loans, auto refinancing, and banking services.
Happen Bank reported revenues of $262.9 million, up 5.8% year on year. This print was in line with analysts’ expectations, and overall, it was an exceptional quarter for the company with full-year EPS guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
“Happen delivered a standout quarter, growing originations 29% year-over-year to $3.1 billion, while producing record pre-tax income of $75.7 million and a return on tangible common equity of 15.9%,” said Scott Sanborn, CEO, Happen, Inc.
Happen Bank delivered the weakest performance against analyst estimates and slowest revenue growth among its peers. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 1.9% since reporting and currently trades at $18.40.
Correction Note: An earlier version of this report said Happen Bank shares are listed on the New York Stock Exchange. This has been updated to reflect the correct exchange (NASDAQ).
Read why we think that Happen Bank is one of the best personal loan stocks, our full report is free.
Best Q2: SoFi (NASDAQ:SOFI)
Starting as a student loan refinancing company founded by Stanford business school students in 2011, SoFi Technologies (NASDAQ:SOFI) operates a digital financial platform offering lending, banking, investing, and other financial services to help members borrow, save, spend, invest, and protect their money.
