goeasy (TSE:GSY) Releases Earnings Results

goeasy (TSE:GSY) announced its quarterly earnings data on Wednesday. The company reported C($20.25) earnings per share (EPS) for the quarter, FiscalAI reports. goeasy had a net margin of 14.07% and a return on equity of 19.42%. The firm had revenue of C$446.40 million for the quarter.

Here are the key takeaways from goeasy’s conference call:

• The company recorded significant LendCare-related hits in Q4 including an incremental CAD 178M charge‑off, a CAD 160M goodwill impairment and a large allowance increase, with LendCare net charge‑offs at 40.6% for the quarter versus ~12% in easyfinancial unsecured loans.
• Management unveiled a six‑point remediation plan — prioritizing growth in the proven easyfinancial direct channel, tightening LendCare underwriting, integrating operations, and cutting ~9% of staff to realize ~CAD 30M annualized savings — and has suspended dividends and buybacks to preserve liquidity.
• easyfinancial (direct‑to‑consumer) remains the company’s healthy core: total consumer loans grew to CAD 5.5B (+~20% YoY) and management says direct channels (57% of the portfolio) continue to perform as expected and are the focus for profitable growth.
• The company restated prior periods for accounting errors (timing of customer payments and Stage 3 interest accruals) and disclosed a LendCare-specific IFRS 9 control deficiency, indicating weaknesses in financial reporting and oversight that management says it will remediate.
• Near‑term outlook and funding: Q1 loans expected at CAD 5.3–5.4B, Q1 net charge‑offs guided to 17.5–18.5% and full‑year net charge‑offs to mid‑teens, with amended securitization/revolver arrangements in place and management stating no new equity is required under current assumptions.

goeasy Trading Down 8.2%

GSY traded down C$3.12 on Wednesday, hitting C$35.11. The company had a trading volume of 456,840 shares, compared to its average volume of 329,117. The company’s fifty day moving average price is C$94.24 and its 200 day moving average price is C$128.27. goeasy has a 1 year low of C$33.13 and a 1 year high of C$216.50. The company has a current ratio of 42.83, a quick ratio of 28.46 and a debt-to-equity ratio of 383.82. The firm has a market cap of C$562.67 million, a P/E ratio of 2.56, a PEG ratio of 0.84 and a beta of 0.16.

Analyst Ratings Changes

Several analysts recently issued reports on GSY shares. National Bank Financial cut shares of goeasy from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, March 10th. Royal Bank Of Canada lowered goeasy from a “hold” rating to a “strong sell” rating in a research report on Wednesday, March 11th. Raymond James Financial cut goeasy from a “moderate buy” rating to a “hold” rating and cut their price target for the company from C$208.00 to C$153.00 in a report on Wednesday, December 3rd. Scotiabank lowered their price objective on goeasy from C$68.00 to C$61.00 and set an “outperform” rating on the stock in a research note on Wednesday, March 25th. Finally, Jefferies Financial Group lowered shares of goeasy from a “strong-buy” rating to a “hold” rating in a report on Wednesday, March 11th. Two investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, goeasy has a consensus rating of “Hold” and a consensus target price of C$163.78.

goeasy Company Profile

goeasy Ltd provides financial services to own furniture, electronics, computers, and appliances. It offers merchandise leasing of household furnishings, appliances, and home electronic products to consumers under weekly or monthly leasing agreements. The company also offers unsecured installment loans to consumers. Its reportable business segments include easyhome and easyfinancial, of which it derives maximum revenue from easyfinancial segment.