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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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 position in any of the stocks mentioned. 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.