EZCORP Earnings: Here’s Why Investors Like These Results

EZCORP Inc. (NASDAQ:EZPW) delivered a profit and beat Wall Street’s expectations, BUT 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 up 0.89%.

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EZCORP Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 13.7% to $0.63 in the quarter versus EPS of $0.73 in the year-earlier quarter.

Revenue: Rose 6.16% to $272.07 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: EZCORP Inc. reported adjusted EPS income of $0.63 per share. By that measure, the company beat the mean analyst estimate of $0.62. It missed the average revenue estimate of $272.34 million.

Quoting Management: Paul Rothamel, EZCORP’s President and Chief Executive Officer, stated: “The second quarter shows the trajectory that we originally planned this year. Our year-over-year earnings decline moderated significantly during the quarter, and we expect to deliver year-over-year earnings growth by the end of the year and to return to double-digit earnings growth next year. This improvement is the direct result of investments we have made to deliver new stores, new channels and new products, and we believe those investments will continue to pay off in the form of net income growth.”

Key Stats (on next page)…

Revenue decreased 1.83% from $277.13 million in the previous quarter. EPS increased 6.78% from $0.59 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 $0.59 to a profit $0.58. For the current year, the average estimate has moved down from a profit of $2.6 to a profit of $2.58 over the last ninety days.

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