The 10-second takeaway
For the quarter ended Sep. 30 (Q2), World Acceptance missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased.
Margins dropped across the board.
World Acceptance reported revenue of $139.4 million. The three analysts polled by S&P Capital IQ looked for sales of $143.4 million on the same basis. GAAP reported sales were 5.5% higher than the prior-year quarter's $132.1 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 $1.72. The five earnings estimates compiled by S&P Capital IQ forecast $1.93 per share. GAAP EPS of $1.72 for Q2 were 13% higher than the prior-year quarter's $1.52 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 76.8%, 50 basis points worse than the prior-year quarter. Operating margin was 29.3%, 140 basis points worse than the prior-year quarter. Net margin was 16.4%, 120 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $149.3 million. On the bottom line, the average EPS estimate is $1.65.
Next year's average estimate for revenue is $590.7 million. The average EPS estimate is $8.32.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 152 members out of 289 rating the stock outperform, and 137 members rating it underperform. Among 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give World Acceptance a green thumbs-up, and 71 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on World Acceptance is outperform, with an average price target of $82.20.
- Add World Acceptance to My Watchlist.
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. The Motley Fool has no positions in the stocks mentioned above. 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.