Buy-now-pay-later service Sezzle (NASDAQCM:SEZL) will be announcing earnings results this Wednesday after the bell. Here’s what investors should know.
Sezzle beat analysts’ revenue expectations last quarter, reporting revenues of $129.9 million, up 32.2% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and .
Is Sezzle a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Sezzle’s revenue to grow 22.7% year on year, slowing from the 123% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sezzle has a history of exceeding Wall Street’s expectations.
Looking at Sezzle’s peers in the personal loan segment, some have already reported their Q1 results, giving us a hint as to what we can expect. FirstCash delivered year-on-year revenue growth of 25.7%, beating analysts’ expectations by 4.8%, and LendingClub reported revenues up 15.9%, topping estimates by 1.2%. FirstCash traded up 3.1% following the results while LendingClub was down 1.8%.
Read our full analysis of FirstCash’s results here and LendingClub’s results here.
There has been positive sentiment among investors in the personal loan segment, with share prices up 8.1% on average over the last month. Sezzle is up 24.4% during the same time and is heading into earnings with an average analyst price target of $93.17 (compared to the current share price of $85.61).
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