EZCORP Meets on the Top Line, Misses Where it Counts

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


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.


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 this article 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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