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CPSS Nasdaq· Consumer Portfolio Service, Inc
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CPSS Nasdaq· Consumer Portfolio Service, Inc
Earnings report Q3 2023

CPSS Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

CPSS reported total revenues of $92.08 million for the three months ended September 30, 2023, compared to $90.31 million in the same period last year. The breakdown of revenue is as follows:

  • Interest income: $83.26 million, up from $79.82 million in the previous year's quarter.
  • Mark to finance receivables measured at fair value: $6.00 million, compared to $8.18 million in the same period last year.
  • Other income: $2.82 million, an increase from $2.31 million in the previous year's quarter.

Strengths

CPSS demonstrated strong revenue growth in the latest quarter, primarily driven by an increase in interest income. This growth can be attributed to the company's ability to generate higher interest from its finance receivables. Additionally, the company's management highlighted the successful execution of their fourth securitization in 2023, which contributed to the overall revenue growth.

Challenges

Despite the overall revenue growth, CPSS experienced a decrease in revenue from mark to finance receivables measured at fair value. This decline may indicate a decrease in the fair value of the receivables, which could pose a challenge for the company's profitability.

Noteworthy

CPSS executed its fourth securitization of 2023 on October 24, 2023. The transaction involved the sale of $286.1 million of asset-backed notes secured by $306.7 million in automobile receivables originated by CPS. The successful completion of this transaction demonstrates the company's ability to access capital markets and generate additional revenue through securitization.

Summary

CPSS reported strong revenue growth in the latest quarter, primarily driven by an increase in interest income. The company's ability to generate higher interest from its finance receivables contributed to this growth. However, CPSS experienced a decline in revenue from mark to finance receivables measured at fair value. The successful execution of the securitization transaction further highlights the company's ability to access capital markets and generate additional revenue. Overall, CPSS demonstrated a positive performance in terms of revenue in the latest quarter.

Source documents

Form 10-Q  filed on Nov 09, 2023
88 pages scanned

Reference data

Company financials Q3 revenue 49.9M
Analyst estimates Q3 EPS missed by NaN%
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