First Cash Financial Services
The 10-second takeaway
For the quarter ended March 31 (Q1), First Cash Financial Services met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Margins dropped across the board.
First Cash Financial Services logged revenue of $135.1 million. The seven analysts polled by S&P Capital IQ wanted to see a top line of $136.7 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $120.8 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 $0.58. The eight earnings estimates compiled by S&P Capital IQ averaged $0.55 per share. GAAP EPS of $0.58 for Q1 were 18% lower than the prior-year quarter's $0.71 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 58.0%, 20 basis points worse than the prior-year quarter. Operating margin was 19.8%, 40 basis points worse than the prior-year quarter. Net margin was 13.0%, 570 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $136.8 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $606.6 million. The average EPS estimate is $2.71.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 506 members rating the stock outperform and 20 members rating it underperform. Among 167 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 160 give First Cash Financial Services a green thumbs-up, and seven 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 $47.38.
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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.