World Acceptance (NASDAQ:WRLD) Posts Earnings Results, Misses Estimates By $0.77 EPS

World Acceptance (NASDAQ:WRLD) announced its earnings results on Tuesday. The credit services provider reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.58 by ($0.77), Zacks reports. World Acceptance had a net margin of 10.00% and a return on equity of 13.65%. The business had revenue of $141.25 million for the quarter, compared to the consensus estimate of $133.49 million.

Here are the key takeaways from World Acceptance’s conference call:

• Originations rose 16% and the outstanding ledger for active new customers was up ~25% year‑over‑year, with organic customer growth of ~5.4% and organic ledger growth of 2.4%.
• Credit performance is improving: first‑pay defaults on new customers are ~19% lower versus the prior high‑volume period and yields increased by 84 basis points year‑over‑year through tighter underwriting and better retention.
• The quarter included an additional provision of about $8 million for new customers and elevated expenses from share‑based compensation and temporary overstaffing, which pressured year‑over‑year earnings.
• Share repurchases have reduced outstanding shares by ~11% (nearly 600,000 shares) year‑to‑date, with roughly $60 million of buyback capacity remaining (~9% of shares), supporting EPS upside.
• Management expects a strong tax season with higher filing volume and larger refunds, lower acquisition costs for higher‑quality new customers, and no broad deterioration in consumer credit behavior to date.

World Acceptance Price Performance

NASDAQ:WRLD opened at $117.51 on Wednesday. The business’s 50-day simple moving average is $144.95 and its two-hundred day simple moving average is $156.19. World Acceptance has a 52 week low of $104.99 and a 52 week high of $185.48. The stock has a market cap of $592.02 million, a PE ratio of 11.24 and a beta of 1.12. The company has a quick ratio of 24.16, a current ratio of 24.16 and a debt-to-equity ratio of 1.60.

Insider Activity

In other World Acceptance news, insider John L. Calmes, Jr. sold 1,000 shares of the company’s stock in a transaction that occurred on Wednesday, December 17th. The stock was sold at an average price of $149.21, for a total value of $149,210.00. Following the completion of the transaction, the insider directly owned 54,395 shares in the company, valued at $8,116,277.95. This represents a 1.81% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Daniel Clinton Dyer sold 8,857 shares of the stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $149.00, for a total transaction of $1,319,693.00. Following the sale, the insider directly owned 33,640 shares of the company’s stock, valued at approximately $5,012,360. This trade represents a 20.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 9,946 shares of company stock valued at $1,482,253 in the last quarter. 41.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On World Acceptance

Several institutional investors have recently bought and sold shares of the stock. Bridgeway Capital Management LLC lifted its stake in World Acceptance by 33.1% in the 2nd quarter. Bridgeway Capital Management LLC now owns 57,928 shares of the credit services provider’s stock worth $9,565,000 after purchasing an additional 14,406 shares in the last quarter. AQR Capital Management LLC increased its holdings in shares of World Acceptance by 51.1% in the second quarter. AQR Capital Management LLC now owns 41,380 shares of the credit services provider’s stock worth $6,833,000 after purchasing an additional 13,999 shares during the last quarter. BNP Paribas Financial Markets lifted its position in shares of World Acceptance by 95.3% in the third quarter. BNP Paribas Financial Markets now owns 24,400 shares of the credit services provider’s stock worth $4,127,000 after buying an additional 11,905 shares in the last quarter. Invesco Ltd. boosted its stake in World Acceptance by 66.4% during the third quarter. Invesco Ltd. now owns 29,602 shares of the credit services provider’s stock valued at $5,007,000 after buying an additional 11,809 shares during the last quarter. Finally, Basswood Capital Management L.L.C. bought a new stake in World Acceptance in the 2nd quarter worth approximately $1,887,000. 83.63% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

WRLD has been the subject of several analyst reports. Zacks Research upgraded World Acceptance from a “strong sell” rating to a “hold” rating in a research note on Monday, December 22nd. Weiss Ratings restated a “hold (c)” rating on shares of World Acceptance in a research report on Monday, December 29th. Two investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the stock has a consensus rating of “Hold”.

Trending Headlines about World Acceptance

Here are the key news stories impacting World Acceptance this week:

• Positive Sentiment: Revenue beat and customer/loan growth: Q3 revenue came in above Street estimates (report cited ~$141.3M vs. ~$133.5M expected) and management highlighted strong customer growth and rising originations on the call, which supports top-line momentum. BusinessWire: Q3 Results
• Neutral Sentiment: Strategy to favor credit quality and rebuild the portfolio: management reiterated that post‑pandemic tightening of underwriting improved credit quality but reduced outstanding receivables; this supports longer-term stability but creates near-term tradeoffs. Seeking Alpha: Earnings Call Transcript
• Negative Sentiment: EPS miss driven by higher loan-loss provisions and a shift toward growth over short-term profits: WRLD reported ($0.19) EPS vs. consensus ~$0.58 (and versus $2.45 a year ago), with management increasing provisions. That earnings shortfall and commentary about prioritizing growth led to the selloff. Investing.com: EPS Miss & Provisions

World Acceptance Company Profile

World Acceptance Corporation (NASDAQ: WRLD) is a consumer finance company headquartered in Greenville, South Carolina. Founded in 1972, the company provides credit solutions to underserved customers who may have limited access to traditional banking services. Over the decades, World Acceptance has built a reputation for tailored lending that emphasizes responsible underwriting and personalized customer service.

The company’s core product offerings include short-term installment loans designed to meet the immediate financial needs of its clients.