Barclays provided its expectations on Santander Consumer USA Holdings Inc SC's Q2 earnings. According to the report published Wednesday, analysts believe the company will post 2Q16 earnings of $0.68 per share, missing the consensus estimate of $0.69.
"We expect lower NCOs q/q in 2Q, which is seasonally the best quarter for auto credit, but note that given SC re-mixed to lower FICO loans during the 1H15, the y/y comparison in NCOs will look worse as those loans originated early last year continue to season," wrote Barclays.
According to the analysts, investors will key in on management commentary around credit trends, the allowance to loans ratio going forward and overall competitive environment, though mentioning that in the past, lack of clarity around the management's commentary has resulted in confusion and volatility around the stock.
The firm has an Overweight rating and $15 price target on Santander Consumer.
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