EZCORP Meets on the Top Line, Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

EZCORP (NAS: EZPW) reported earnings on Jan. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), EZCORP met expectations on revenues and missed on earnings per share.

Compared to the prior-year quarter, revenue increased, and earnings per share increased significantly.

Gross margins grew, operating margins shrank, net margins improved.

Revenue details
EZCORP reported revenue of $249 million. The nine analysts polled by S&P Capital IQ anticipated revenue of $251 million. Sales were 14% higher than the prior-year quarter's $219 million

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.78. The eight earnings estimates compiled by S&P Capital IQ averaged $0.81 per share. GAAP EPS of $0.78 for Q1 were 42% higher than the prior-year quarter's $0.55 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 61.9%, 60 basis points better than the prior-year quarter. Operating margin was 21.9%, 110 basis points worse than the prior-year quarter. Net margin was 15.8%, 330 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $249 million. On the bottom line, the average EPS estimate is $0.75.

Next year's average estimate for revenue is $1.0 billion. The average EPS estimate is $3.05.

Investor Sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 593 members out of 614 rating the stock outperform, and 21 members rating it underperform. Among 186 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 183 give EZCORP a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on EZCORP is outperform, with an average price target of $40.50.

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At the time thisarticle was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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