PROG Holdings Beats Q1 2024 Earnings and Revenue Estimates

PROG Holdings reports strong Q1 2024 earnings, beating analyst estimates, despite a challenging retail environment. The company remains focused on strategic growth initiatives, positioning it for future success.

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Israel Ojoko
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PROG Holdings Beats Q1 2024 Earnings and Revenue  Estimates

PROG Holdings Beats Q1 2024 Earnings and Revenue Estimates

PROG Holdings, Inc. (PRG) reported its first quarter 2024 earnings, which decreased from the same period last year but surpassed analysts' projections.

The company reported adjusted earnings of $0.91 per share, exceeding the average analyst estimate of $0.82 per share by 9.64%. Revenue for the quarter was $641.87 million, surpassing expectations by 1.52%, despite a year-over-year decline from $655.14 million.

The company's GAAP earnings were $21.97 million, or $0.49 per share, compared to $48.03 million, or $1.00 per share, in the prior-year quarter. PROG Holdings' Q1 GMV rebounded from a soft start to 2024, ending flat year-over-year. The company gained market share with key partners amidst a challenging retail environment.

Consolidated adjusted EBITDA of $72.6 million, or 11.3% of revenue, exceeded the high end of the company's outlook, driven by GMV growth in the second half of the quarter and strong portfolio performance. PROG Holdings remains focused on its strategic pillars of grow, enhance, and expand, including onboarding new retailers, driving growth in the PROG Marketplace, and investing in direct-to-consumer marketing and personalization.

Why this matters: PROG Holdings' strong Q1 2024 performance, despite a challenging retail environment, demonstrates the company's resilience and ability to gain market share. The company's focus on strategic growth initiatives and investments in key areas positions it well for future success in the rapidly evolving retail landscape.

Looking ahead, PROG Holdings updated its full-year 2024 outlook, projecting revenue between $2.285 billion and $2.360 billion, and non-GAAP diluted EPS between $2.85 and $3.10. The company's CEO, Steve Michaels, expressed optimism about the future, stating, "We are pleased with our first quarter results and remain focused on executing our strategic priorities to drive long-term growth and shareholder value."

Key Takeaways

  • PROG Holdings Q1 2024 earnings beat analyst estimates despite revenue decline
  • GAAP earnings decreased year-over-year, but adjusted EBITDA exceeded outlook
  • Company gained market share with key partners amid challenging retail environment
  • Focused on strategic growth initiatives like new retailers and PROG Marketplace
  • Raised full-year 2024 outlook for revenue and non-GAAP diluted EPS