The 10-second takeaway
For the quarter ended Dec. 31 (Q1), EZCORP beat expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.
Gross margins increased, operating margins dropped, net margins dropped.
EZCORP reported revenue of $277.1 million. The eight analysts polled by S&P Capital IQ hoped for net sales of $268.9 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $248.9 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 $0.59. The seven earnings estimates compiled by S&P Capital IQ predicted $0.58 per share. GAAP EPS of $0.59 for Q1 were 24% lower than the prior-year quarter's $0.78 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 63.3%, 140 basis points better than the prior-year quarter. Operating margin was 16.9%, 500 basis points worse than the prior-year quarter. Net margin was 11.1%, 470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $274.4 million. On the bottom line, the average EPS estimate is $0.64.
Next year's average estimate for revenue is $1.08 billion. The average EPS estimate is $2.59.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 642 members out of 664 rating the stock outperform, and 22 members rating it underperform. Among 179 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 176 give EZCORP a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EZCORP is hold, with an average price target of $23.80.
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