First Cash Financial Services
The 10-second takeaway
For the quarter ended June 30 (Q2), First Cash Financial Services missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share was unchanged. GAAP earnings per share shrank.
Gross margins increased, operating margins shrank, net margins contracted.
First Cash Financial Services reported revenue of $143.1 million. The 11 analysts polled by S&P Capital IQ predicted a top line of $151.5 million on the same basis. GAAP reported sales were 8.1% higher than the prior-year quarter's $132.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.57. The eight earnings estimates compiled by S&P Capital IQ predicted $0.56 per share. Non-GAAP EPS of $0.57 were the same as the prior-year quarter. GAAP EPS of $0.53 for Q2 were 5.4% lower than the prior-year quarter's $0.56 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 59.2%, 270 basis points better than the prior-year quarter. Operating margin was 17.0%, 190 basis points worse than the prior-year quarter. Net margin was 10.9%, 140 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $169.0 million. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $672.8 million. The average EPS estimate is $2.82.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 502 members out of 522 rating the stock outperform, and 20 members rating it underperform. Among 161 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 157 give First Cash Financial Services a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on First Cash Financial Services is outperform, with an average price target of $53.90.
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