Tuesday, 19 March 2013

Carfinco Rates $12.25 BUY Target From GMP Securities

Shares outstanding: 24.65 million
Shares fully diluted: 24.65 million

On the heels of yesterday’s late afternoon release of Carfinco’s 2012 yearend financial results, GMP Securities analyst Stephen Boland, updated his research on the company under the banner of “Q4/12 Results – Loan Growth Solid."

GMP is calling for EPS (Earnings Per Share) of $0.96 for this year and $1.11 in 2014.

Carfinco reported 2012 earnings of $20.6 million and EPS of $0.84 compared to $17.1 million and $0.70 EPS in 2011.

Carfinco, which continues to show greater than 50% annual shareholder’s Return On Equity, saw loan originations jump 28.6% to $149.6 million from $116.3 million in 2011.

Mr. Boland noted that loan provisions were increased to $7.5 million in Q4/2012 from $6 million in Q4/11 as the annual loss rate on finance receivables increased to 15.1% from 12.8%.

Carfinco management stated in the news release that it “has implemented modifications to our credit and collection policies where required and continues to evaluate loan losses on a geographical basis."

To read the news release and review the financial statements, please click here.