PROG Holdings Reports Good Q4 2020 Results and Big Buyback
PROG Holdings (PRG) reported a great quarter today. Q4 revenue was up 6.5% to $605.7MM. Non GAAP adjusted EPS was $0.95 (+46.2% y/y) and adjusted EBIDTA was up 35.9% to $90MM. It’s been an unusually profitable year for Progressive as loan losses have been very low given all the stimulus money that has been made available. The company gave good Q1 2021 guidance ahead of consensus expectations, but the biggest postiive was it announced a $300MM share repurchase authorization which represents ~9% of the company’s market cap. Given its capital light model, high return on invested capital and low valuation, buy backs make a ton of sense.