The 10-second takeaway
For the quarter ended March 31 (Q2), EZCORP met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share contracted. GAAP earnings per share contracted.
Gross margins grew, operating margins dropped, net margins dropped.
EZCORP booked revenue of $272.1 million. The seven analysts polled by S&P Capital IQ predicted revenue of $275.3 million on the same basis. GAAP reported sales were 6.2% higher than the prior-year quarter's $256.3 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 $0.66. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.62 per share. Non-GAAP EPS of $0.66 for Q2 were 9.6% lower than the prior-year quarter's $0.73 per share. GAAP EPS of $0.63 for Q2 were 14% lower than the prior-year quarter's $0.73 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 63.9%, 80 basis points better than the prior-year quarter. Operating margin was 18.7%, 310 basis points worse than the prior-year quarter. Net margin was 12.5%, 200 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $248.1 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $1.06 billion. The average EPS estimate is $2.53.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 651 members out of 673 rating the stock outperform, and 22 members rating it underperform. Among 155 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 153 give EZCORP a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EZCORP is hold, with an average price target of $23.60.
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