DFC Global Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool

DFC Global (NAS: DLLR) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), DFC Global met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded.

Gross margins increased, operating margins contracted, and net margins contracted.

Revenue details
DFC Global reported revenue of $263.4 million. The eight analysts polled by S&P Capital IQ expected sales of $262.7 million. Sales were 44% higher than the prior-year quarter's $182.5 million.


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

EPS details
Non-GAAP EPS came in at $0.51. The nine earnings estimates compiled by S&P Capital IQ predicted $0.50 per share on the same basis. GAAP EPS of $0.58 for Q2 were 8.9% higher than the prior-year quarter's $0.53 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 81.1%, 1,280 basis points better than the prior-year quarter. Operating margin was 24.6%, 330 basis points worse than the prior-year quarter. Net margin was 9.9%, 110 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $266.6 million. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $1.06 billion. The average EPS estimate is $2.08.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 71 members out of 86 rating the stock outperform, and 15 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give DFC Global a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DFC Global is buy, with an average price target of $28.29.

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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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