Jefferson Capital's stock plummeted 5.78% during intraday trading on Friday, following the release of the company's first-quarter earnings report after the previous trading session's close.
The decline comes despite the company reporting adjusted earnings per share of $0.73 for the quarter ended March 31, which beat the analyst consensus estimate of $0.69. Revenue also exceeded expectations, rising 13.9% year-over-year to $176.44 million compared to the estimated $169.17 million.
However, investors appeared to focus on the significant year-over-year decline in profitability, with adjusted EPS dropping from $1.08 in the same quarter last year to $0.73 in the current quarter, representing a decrease of approximately 32%. The stock had already been under pressure, having fallen 3.0% during the quarter and losing 16.5% year-to-date prior to this earnings release.