Back to top

Image: Bigstock

Upstart (UPST) to Report Q3 Earnings: What's in the Offing?

Read MoreHide Full Article

Upstart Holdings (UPST - Free Report) is set to release third-quarter 2021 results on Nov 9.

For the third quarter, the company expects revenues between $205 million and $215 million. The Zacks Consensus Estimate for the top line is currently pegged at $213.5 million.

Further, the consensus mark for earnings has been unchanged at 31 cents per share.

Factors to Consider

Upstart is expected to have continued benefiting from the solid momentum across its platform in the third quarter. Further, strength across the Upstart-powered loans is likely to have helped the company attract lenders to its platform.

The company’s growing AI efforts in order to strengthen its platform are anticipated to have been positives. Upstart’s AI-backed model with advanced algorithms is likely to have contributed well to its performance.

Upstart Holdings, Inc. Price and EPS Surprise

 

Upstart Holdings, Inc. Price and EPS Surprise

Upstart Holdings, Inc. price-eps-surprise | Upstart Holdings, Inc. Quote

The increasing number of new bank partners and expanding lending programs from existing bank partners on upstart.com are likely to have driven the company’s customer momentum in the third quarter.

The company’s growing traction in its Prodigy Software is expected to have bolstered the sale of vehicles, which, in turn, is expected to get reflected in the third-quarter results.

Upstart-powered banks have originated more than 2,000 auto refinance loans in 40 different states. This is expected to have been another tailwind.

However, mounting expenses are anticipated to have impacted the quarterly performance negatively.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Upstart this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Upstart has an Earnings ESP of 0.00% and a Zacks Rank #4.

Stocks to Consider

Here are some stocks that you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

BellRing Brands (BRBR - Free Report) has an Earnings ESP of +14.11% and a Zacks Rank of 2 at present.

Central Garden & Pet (CENT - Free Report) currently has an Earnings ESP of +22.22% and a Zacks Rank of 2.

Diana Shipping (DSX - Free Report) has an Earnings ESP of +5.88% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Published in