goeasy (TSE:GSY) Issues Earnings Results

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

Shares of TSE:GSY opened at C$37.36 on Thursday. The stock has a market capitalization of C$598.73 million, a P/E ratio of 2.73, a P/E/G ratio of 0.84 and a beta of 0.16. The business has a 50-day moving average of C$92.40 and a two-hundred day moving average of C$127.64. goeasy has a fifty-two week low of C$33.13 and a fifty-two week high of C$216.50. The company has a debt-to-equity ratio of 383.82, a current ratio of 42.83 and a quick ratio of 28.46.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on GSY. BMO Capital Markets lowered goeasy from a “strong-buy” rating to a “hold” rating in a report on Tuesday, March 10th. National Bank Financial downgraded goeasy from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, March 10th. Raymond James Financial cut goeasy from a “moderate buy” rating to a “hold” rating and lowered their price target for the company from C$208.00 to C$153.00 in a research note on Wednesday, December 3rd. ATB Cormark Capital Markets dropped their price objective on goeasy from C$200.00 to C$185.00 and set an “outperform” rating on the stock in a report on Friday, February 13th. Finally, TD Securities lowered shares of goeasy from a “buy” rating to a “hold” rating and cut their price objective for the company from C$160.00 to C$135.00 in a research report on Monday, January 19th. Two investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of C$163.78.

About goeasy

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.