EZCORP Misses on the Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

EZCORP (NAS: EZPW) reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q3), EZCORP missed estimates on revenue and missed estimates on earnings per share.

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


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

Revenue details
EZCORP logged revenue of $229.0 million. The eight analysts polled by S&P Capital IQ expected sales of $240.4 million on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $203.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.56. The eight earnings estimates compiled by S&P Capital IQ predicted $0.61 per share. GAAP EPS of $0.56 for Q3 were 5.7% higher than the prior-year quarter's $0.53 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 63.4%, 290 basis points better than the prior-year quarter. Operating margin was 17.2%, 110 basis points worse than the prior-year quarter. Net margin was 12.5%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $264.3 million. On the bottom line, the average EPS estimate is $0.76.

Next year's average estimate for revenue is $1.01 billion. The average EPS estimate is $2.88.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 616 members out of 639 rating the stock outperform, and 23 members rating it underperform. Among 155 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 153 give EZCORP a green thumbs-up, and two 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 $35.14.

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The article EZCORP Misses on the Top and Bottom Lines originally appeared on Fool.com.

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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