For the second quarter, analysts expect a 14% decline in
revenues to $278.37 million. However, Wall Street expects loan balance and
origination volume to grow year-over-year and offset a part of the market-wide
weakness that is expected to weigh on the top-line.
Second-quarter profit is projected to be 51 cents per share, compared with 32 cents per share reported last year. In the past two months, the EPS estimate has been revised from the prior projection of 43 cents per share, lending some confidence leading up to the upcoming results.
Qudian has topped earnings estimates in all of the trailing four
quarters.
The Xiamen-based firm owes its initial success to the opening
up of the online credit market in China, allowing companies to set up digital
platforms for small consumer credit products. However, last year the sector
came under stringent regulatory scrutiny, resulting in curbs on such companies.
In the first quarter, Qudian reported stronger than expected revenues and profit, sending its shares higher.