PROG Holdings, Inc. PRG is slated to report its second-quarter 2026 results on July 29, before the opening bell. In anticipation of the announcement, industry analysts and investors are eager to assess the company's performance and prospects in the current economic climate.
In the last reported quarter, this fintech holding company delivered an upbeat performance in terms of earnings per share from continuing operations. Improving Progressive Leasing demand, rapid growth at Four and disciplined credit management supported revenues and profitability.
Over the trailing four quarters, PROG Holdings topped the Zacks Consensus Estimate on each occasion, with the average beat being 33.68%. This is depicted in the graph below:
Image Source: Zacks Investment Research
Factors to Note Ahead of PRG's Q2 Earnings Release
Management guided for second-quarter revenues of $700 million to $725 million, adjusted EBITDA of $72 million to $82 million and non-GAAP EPS of 85 cents to $1.05.
Progressive Leasing is likely to show improving demand after gross merchandise volume (GMV) returned to year-over-year growth exiting March. The segment is likely to have benefited from improving GMV trends, stronger customer activity and disciplined underwriting. However, investors need to watch write-offs and lease portfolio performance, especially as lower-income consumers continue to face pressure from high living costs.
Four is expected to post another quarter of strong growth, supported by merchant expansion and higher transaction volume. The key question is whether rapid growth is translating into better profitability. Purchasing Power should contribute a fuller quarter of revenues, with seasonal volume and integration progress shaping its earnings contribution.
Amid this, the Zacks Consensus Estimate for second-quarter revenues is currently pegged at $711.55 million, which indicates a 17.68% year-over-year increase.
PROG Holdings’ activities during the to-be-reported quarter were not adequate for gaining analysts’ confidence. The Zacks Consensus Estimate for second-quarter EPS has not been revised in the past two months, and it currently stands at 96 cents. It implies a 5.88% decrease year over year.
What Our Quantitative Model Predicts for PRG
Our proven model does not conclusively predict a surprise in terms of EPS for PROG Holdings this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
PROG Holdings currently has an Earnings ESP of 0.00% and carries a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader financial technology sector, Block, Inc. XYZ and Virtu Financial, Inc. VIRT, you may want to consider, as our model shows that these have the right combination of elements to report an earnings beat this quarter.
Block is slated to report quarterly numbers on Aug. 5. Block has an Earnings ESP of +0.23% and sports a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Virtu Financial is slated to report quarterly numbers on July 30. Virtu Financial has an Earnings ESP of +3.25% and a Zacks Rank of 3 at present.
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This article originally published on Zacks Investment Research (zacks.com).