The 10-second takeaway
For the quarter ended June 30 (Q3), EZCORP missed estimates on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.
Gross margins increased, operating margins shrank, and net margins contracted.
EZCORP logged revenue of $229.0 million. The eight analysts polled by S&P Capital IQ expected sales of $240.4 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $203.2 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 $0.56. The eight earnings estimates compiled by S&P Capital IQ predicted $0.61 per share. GAAP EPS of $0.56 for Q3 were 5.7% higher than the prior-year quarter's $0.53 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 63.4%, 290 basis points better than the prior-year quarter. Operating margin was 17.2%, 110 basis points worse than the prior-year quarter. Net margin was 12.5%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $264.3 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $2.88.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 616 members out of 639 rating the stock outperform, and 23 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 outperform, with an average price target of $35.14.
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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.