Cash America International Earnings: Here’s Why Shares are Down Now

Cash America International, Inc. (NYSE:CSH) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 6.77%.

Cash America International, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 13.83% to $0.81 in the quarter versus EPS of $0.94 in the year-earlier quarter.

Revenue: Decreased 0.16% to $411 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cash America International, Inc. reported adjusted EPS income of $0.81 per share. By that measure, the company missed the mean analyst estimate of $0.84. It missed the average revenue estimate of $416.43 million.

Quoting Management: Commenting on the results of the quarter, Daniel R. Feehan, President and Chief Executive Officer of Cash America said, The overall financial results for the second quarter reflect the trends that we have experienced over the past four quarters. Our Domestic Retail Services Segment has faced an industry-wide challenge of adjusting to the rapidly changing environment for the commercial sales of scrap gold and to historically tepid loan demand. At the same time, our E-Commerce Segment remains a bright spot for our enterprise with ongoing growth in its revenue and earnings associated with its diversification of loan products in both the U.S. and international markets. We expect the trends reflected in our second quarter results will continue through the balance of 2013.

Key Stats (on next page)…

Revenue decreased 12.2% from $468.13 million in the previous quarter. EPS decreased 42.14% from $1.40 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.09 to a profit $1.01. For the current year, the average estimate has moved down from a profit of $4.82 to a profit of $4.55 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)