EZCORP Earnings: Here’s Why Investors are Bidding Up Shares

EZCORP Inc. (NASDAQ:EZPW) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.93%.

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EZCORP Inc. Earnings Cheat Sheet

Results: Net income decreased -21.98% to $30.7 million (59 cents per diluted share) in the quarter versus a net gain of $39.35 million in the year-earlier quarter.

Revenue: Rose 11.34% to $277.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: EZCORP Inc. reported adjusted net income of 59 cents per share. By that measure, the company beat the mean analyst estimate of $0.58. It beat the average revenue estimate of $266.75 million.

Quoting Management: Paul Rothamel, EZCORP’s President and Chief Executive Officer, stated: “During the first quarter, we furthered our previously announced strategic initiatives, accelerating our de novo storefront growth and diversifying our revenue and profit streams by adding new channels, new geographies and new products. And excluding the impact of the challenging gold environment in pawn and the regulatory environment in financial services, our core businesses continued to perform well.”

Key Stats:

Revenue increased 7.26% from $258.35 million in the previous quarter. Net income decreased 20.4% from $38.57 million 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 $0.82 to a profit $0.65. For the current year, the average estimate has moved down from a profit of $3.22 to a profit of $2.59 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)