Prog Holdings (PRG, Financial) announced its first quarter financial results, surpassing both revenue and earnings expectations. The company reported revenues of $684.09 million, outpacing analyst predictions which were set at $678.23 million.
CEO Steve Michaels highlighted the successful execution across the company's operations as a key factor in achieving results beyond their initial outlook. A significant contributor to this success is the company’s ongoing ecosystem strategy, particularly through its "Four" platform, which focuses on the Buy Now, Pay Later (BNPL) model. This platform has shown remarkable performance, marking its sixth consecutive quarter of triple-digit growth in gross merchandise volume (GMV) and reaching its inaugural quarter of positive adjusted EBITDA.
Additionally, Prog Holdings noted progress in their cross-selling initiatives, which are beginning to provide tangible benefits to Progressive Leasing's GMV, further bolstering the company's financial strength.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for PROG Holdings Inc (PRG, Financial) is $42.67 with a high estimate of $53.00 and a low estimate of $29.00. The average target implies an upside of 60.46% from the current price of $26.59. More detailed estimate data can be found on the PROG Holdings Inc (PRG) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, PROG Holdings Inc's (PRG, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for PROG Holdings Inc (PRG, Financial) in one year is $38.16, suggesting a upside of 43.51% from the current price of $26.59. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the PROG Holdings Inc (PRG) Summary page.
