OnDeck Capital's (ONDK +1.5%) disappointing outlook in its Q1 earnings doesn't jibe with that of other subprime lenders, who "generally painted a portrait of stable underwriting, recoveries, and payment trends," JMP analyst David Scharf writes in a note.
JMP held calls with Enova International (ENVA +1.1%) and Kabbage and pored over results and trends at Square's (SQ +1.5%) Square Capital product and PayPal's (PYPL +0.3%) merchant financing offerings.
OnDeck's caution appears to be company-specific, Scharf writes, noting underperforming 2018 vintage; found no corraboration for OnDeck's view that competition heated up since late last year or cooling of small business optimism.
Previously: OnDeck -9.8% on dimmer 2019 revenue outlook, disappointing Q1 (May. 02 2019)
Subscribe for full text news in your inbox