First Cash Financial Services Beats on EPS, but GAAP Results Lag
First Cash Financial Services (NAS: FCFS) reported earnings on April 18. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), First Cash Financial Services met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Margins dropped across the board.
First Cash Financial Services logged revenue of $135.1 million. The seven analysts polled by S&P Capital IQ wanted to see a top line of $136.7 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $120.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.58. The eight earnings estimates compiled by S&P Capital IQ averaged $0.55 per share. GAAP EPS of $0.58 for Q1 were 18% lower than the prior-year quarter's $0.71 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 58.0%, 20 basis points worse than the prior-year quarter. Operating margin was 19.8%, 40 basis points worse than the prior-year quarter. Net margin was 13.0%, 570 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $136.8 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $606.6 million. The average EPS estimate is $2.71.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 506 members rating the stock outperform and 20 members rating it underperform. Among 167 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 160 give First Cash Financial Services a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on First Cash Financial Services is outperform, with an average price target of $47.38.
Over the decades, small-cap stocks like First Cash Financial Services have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add First Cash Financial Services to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.