EFN shows Earnings and Revenue beat in Q1 Element Fleet reported first quarter earnings that beat analysts' expectations on Wednesday and revenue that topped forecasts.
The firm reported earnings per share of C$0.23 on revenue of C$247.1M. Analysts polled by Investing.com anticipated EPS of C$0.2081 on revenue of C$237.21M. .
For the year, Element Fleet shares are up 18%, outperforming the Nasdaq which is up 0.85% year to date.
Credit Suisse kept its Outperform and $19 price target on Element Fleet after the company reported adjusted operating EPS of $0.23 in Q4 2020, coming in ahead of CSe and consensus of $0.21.
The brokerage says there were several positives in the quarter that give it higher conviction on EFN's medium-term outlook, including:
- Strong origination activity as volumes increased 8% Q/Q and were at a 3-year high if Armada is excluded (mega-fleet client Armada will self-fund starting in 2021).
- Net interest margins were up a very strong 32 bps sequentially and have more upside as funding costs decline further.
- Management remains comfortable with its target of mid-single-digit revenue growth in 2021, driven by NII and servicing revenue.