The 10-second takeaway
For the quarter ended Dec. 31 (Q3), World Acceptance missed on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved and earnings per share improved significantly.
Gross margins shrank, operating margins dropped, and net margins grew.
World Acceptance booked revenue of $135.9 million. The three analysts polled by S&P Capital IQ looked for sales of $139.7 million. Sales were 7.9% higher than the prior-year quarter's $126.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.12. The four earnings estimates compiled by S&P Capital IQ averaged $1.32 per share on the same basis. GAAP EPS of $1.30 for Q3 were 16% higher than the prior-year quarter's $1.12 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 73.4%, 120 basis points worse than the prior-year quarter. Operating margin was 24.7%, 120 basis points worse than the prior-year quarter. Net margin was 14.4%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $150.7 million. On the bottom line, the average EPS estimate is $2.46.
Next year's average estimate for revenue is $542.8 million. The average EPS estimate is $6.53.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 144 members out of 287 rating the stock outperform, and 143 members rating it underperform. Among 121 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give World Acceptance a green thumbs-up, and 75 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on World Acceptance is buy, with an average price target of $76.25.
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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.