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For the first quarter, the company expects revenues of approximately $100 million. The Zacks Consensus Estimate for the top line is currently pegged at $98.77 million, suggesting a decline of 68.15% year over year.
The consensus mark for the bottom line has remained unchanged at a loss of 80 cents per share in the past 30 days, suggesting a decline of 231.15%.
The company’s earnings beat the Zacks Consensus Estimate in three out of the trailing four quarters and missing in the remaining one, the average surprise being -14.41%.
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Upstart’s first-quarter performance is likely to have benefited from its strategy to operate as a multiproduct company. Recent launches across Upstart’s product portfolio powered by generative AI and machine learning might have favored the company’s performance in the to-be-reported quarter.
The company is expected to have benefited from the launch of its Upstart Macro Index or UMI. This new metric measures how changing economic conditions, like inflation and unemployment, are impacting credit performance. The new metric is likely to have given the company a competitive advantage in the first quarter.
The company may have gained from a growing partner base in the first quarter. It is engaged with multiple prospective partners who are actively exploring long-term capital relationships.
In the quarter to be reported, Upstart may have benefited from providing lenders with near real-time insight into the financial health and allowing them to adjust their lending programs accordingly. It marks a step forward in providing banks and credit unions with lending infrastructure that autonomously and rapidly adapt to changes in the economy.
Further degradation in the macro environment, conservative assumption for UMI in loan pricing, traditional Q1 seasonal headwinds and tightening from funding partners are expected to have hurt the top line in the to-be-reported quarter.
Consumer delinquencies are elevated and the funding markets remain limited in their appetite for risk. This is expected to have increased loan pricing in the company’s platform and lowered approval rates for loan applicants, thus reducing transaction volume and affecting the top line.
What Our Model Indicates
Our proven model doesn’t conclusively predict earnings beat for Upstart this time around. Per the Zacks model, 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. However, that is not the case here.
UPST has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
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Upstart (UPST) to Report Q1 Earnings: What's in the Offing?
Upstart Holdings (UPST - Free Report) is slated to release first-quarter 2023 results on May 9.
For the first quarter, the company expects revenues of approximately $100 million. The Zacks Consensus Estimate for the top line is currently pegged at $98.77 million, suggesting a decline of 68.15% year over year.
The consensus mark for the bottom line has remained unchanged at a loss of 80 cents per share in the past 30 days, suggesting a decline of 231.15%.
The company’s earnings beat the Zacks Consensus Estimate in three out of the trailing four quarters and missing in the remaining one, the average surprise being -14.41%.
Upstart Holdings, Inc. Price and EPS Surprise
Upstart Holdings, Inc. price-eps-surprise | Upstart Holdings, Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors to Note
Upstart’s first-quarter performance is likely to have benefited from its strategy to operate as a multiproduct company. Recent launches across Upstart’s product portfolio powered by generative AI and machine learning might have favored the company’s performance in the to-be-reported quarter.
The company is expected to have benefited from the launch of its Upstart Macro Index or UMI. This new metric measures how changing economic conditions, like inflation and unemployment, are impacting credit performance. The new metric is likely to have given the company a competitive advantage in the first quarter.
The company may have gained from a growing partner base in the first quarter. It is engaged with multiple prospective partners who are actively exploring long-term capital relationships.
In the quarter to be reported, Upstart may have benefited from providing lenders with near real-time insight into the financial health and allowing them to adjust their lending programs accordingly. It marks a step forward in providing banks and credit unions with lending infrastructure that autonomously and rapidly adapt to changes in the economy.
Further degradation in the macro environment, conservative assumption for UMI in loan pricing, traditional Q1 seasonal headwinds and tightening from funding partners are expected to have hurt the top line in the to-be-reported quarter.
Consumer delinquencies are elevated and the funding markets remain limited in their appetite for risk. This is expected to have increased loan pricing in the company’s platform and lowered approval rates for loan applicants, thus reducing transaction volume and affecting the top line.
What Our Model Indicates
Our proven model doesn’t conclusively predict earnings beat for Upstart this time around. Per the Zacks model, 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. However, that is not the case here.
UPST has a Zacks Rank #3 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Blink Charging (BLNK - Free Report) has a Zacks Rank #2 and an Earnings ESP of +27.74%. You can see the complete list of today’s Zacks #1 Rank stocks here.
BLNK’s shares have fallen 36.3% in the year-to-date period compared with the Zacks Electronics - Miscellaneous Services industry’s decline of 17.1%.
Airbnb (ABNB - Free Report) has an Earnings ESP of +23.46% and a Zacks Rank #3.
Airbnb’s shares have gained 37.6% in the year-to-date period compared with the Zacks Internet - Content industry’s rise of 18.1%.
Keysight Technologies (KEYS - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #3.
KEY’s shares have slipped 17.4% in the year-to-date period compared with the Zacks Electronics - Measuring Instruments industry’s decline of 14.7%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.