How the Wheels Came Off World Acceptance's Bus
World Acceptance (NAS: WRLD) reported earnings on Jan. 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), World Acceptance missed on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue improved and earnings per share improved significantly.
Gross margins shrank, operating margins dropped, and net margins grew.
World Acceptance booked revenue of $135.9 million. The three analysts polled by S&P Capital IQ looked for sales of $139.7 million. Sales were 7.9% higher than the prior-year quarter's $126.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.12. The four earnings estimates compiled by S&P Capital IQ averaged $1.32 per share on the same basis. GAAP EPS of $1.30 for Q3 were 16% higher than the prior-year quarter's $1.12 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 73.4%, 120 basis points worse than the prior-year quarter. Operating margin was 24.7%, 120 basis points worse than the prior-year quarter. Net margin was 14.4%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $150.7 million. On the bottom line, the average EPS estimate is $2.46.
Next year's average estimate for revenue is $542.8 million. The average EPS estimate is $6.53.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 144 members out of 287 rating the stock outperform, and 143 members rating it underperform. Among 121 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 46 give World Acceptance a green thumbs-up, and 75 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on World Acceptance is buy, with an average price target of $76.25.
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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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