Santander Consumer USA (SC) Stock Plummets On Delayed Q2 Earnings

Santander Consumer USA (SC) stock is falling on Monday after the company announced it would delay the release of its 2016 second quarter earnings.
By Annie Palmer ,

NEW YORK (TheStreet) -- Shares of Santander Consumer USA (SC) - Get Report  are tanking 9.87% to $10.68 on heavy trading volume in mid-morning trading after the company said it would delay the results of its fiscal 2016 second quarter earnings. 

The car financing unit's second quarter results were expected to be due out before tomorrow's opening bell, but financial statements still need to be completed, Santander Consumer USA said in a statement. Santander Consumer USA is a part of Spanish bank holding company Banco Santander (SAN). 

"The company is in discussions with its current and previous independent accountants regarding certain accounting matters, primarily related to the company's discount accretion and credit loss allowance methodologies," Santander Consumer USA said. 

Resolution of the situation could also impact prior financial statements, the company added.

About 3.76 million of the company's shares changed hands so far today, above the company's average 30-day volume of 2.08 million shares per day. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate SANTANDER CONSUMER USA HLDGS as a Sell with a ratings score of E+. This is based on a variety of negative investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: SC

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