The 10-second takeaway
For the quarter ended Dec. 31 (Q3), World Acceptance met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew significantly.
Gross margins increased, operating margins grew, net margins dropped.
World Acceptance logged revenue of $149.6 million. The four analysts polled by S&P Capital IQ foresaw a top line of $149.8 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $135.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.58. The five earnings estimates compiled by S&P Capital IQ predicted $1.65 per share. GAAP EPS of $1.58 for Q3 were 22% higher than the prior-year quarter's $1.30 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 75.0%, 160 basis points better than the prior-year quarter. Operating margin was 25.0%, 30 basis points better than the prior-year quarter. Net margin was 13.8%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $162.5 million. On the bottom line, the average EPS estimate is $3.12.
Next year's average estimate for revenue is $584.5 million. The average EPS estimate is $8.07.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 146 members out of 286 rating the stock outperform, and 140 members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give World Acceptance a green thumbs-up, and 67 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on World Acceptance is outperform, with an average price target of $81.80.
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