The 10-second takeaway
For the quarter ended March 31 (Q2), EZCORP met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share contracted. GAAP earnings per share contracted.
Gross margins grew, operating margins dropped, net margins dropped.
EZCORP booked revenue of $272.1 million. The seven analysts polled by S&P Capital IQ predicted revenue of $275.3 million on the same basis. GAAP reported sales were 6.2% higher than the prior-year quarter's $256.3 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 $0.66. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.62 per share. Non-GAAP EPS of $0.66 for Q2 were 9.6% lower than the prior-year quarter's $0.73 per share. GAAP EPS of $0.63 for Q2 were 14% lower than the prior-year quarter's $0.73 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 63.9%, 80 basis points better than the prior-year quarter. Operating margin was 18.7%, 310 basis points worse than the prior-year quarter. Net margin was 12.5%, 200 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $248.1 million. On the bottom line, the average EPS estimate is $0.49.
Next year's average estimate for revenue is $1.06 billion. The average EPS estimate is $2.53.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 651 members out of 673 rating the stock outperform, and 22 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 hold, with an average price target of $23.60.
Looking for alternatives to EZCORP? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add EZCORP 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 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.