First Cash Financial Services
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), First Cash Financial Services missed slightly on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue grew and earnings per share grew.
Margins contracted across the board.
First Cash Financial Services reported revenue of $147 million. The eight analysts polled by S&P Capital IQ predicted net sales of $149 million. Sales were 13% higher than the prior-year quarter's $130 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.70. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.69 per share. GAAP EPS of $0.70 for Q4 were 13% higher than the prior-year quarter's $0.62 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 31.6%, 2,680 basis points worse than the prior-year quarter. Operating margin was 22.0%, 20 basis points worse than the prior-year quarter. Net margin was 14.6%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $139 million. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $603 million. The average EPS estimate is $2.68.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 505 members out of 526 rating the stock outperform, and 21 members rating it underperform. Among 172 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 164 give First Cash Financial Services a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on First Cash Financial Services is outperform, with an average price target of $49.11.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.