FirstCash (NASDAQ:FCFS) Issues Quarterly Earnings Results

FirstCash (NASDAQ:FCFS) posted its quarterly earnings results on Thursday. The company reported $2.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.63 by $0.05, Zacks reports. The firm had revenue of $1.10 billion for the quarter, compared to analyst estimates of $1.07 billion. FirstCash had a net margin of 9.48% and a return on equity of 20.17%. The firm’s quarterly revenue was up 17.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.86 earnings per share.

FirstCash Price Performance

Shares of NASDAQ:FCFS traded down $12.03 on Friday, hitting $172.75. The stock had a trading volume of 1,505,756 shares, compared to its average volume of 383,906. The company has a debt-to-equity ratio of 1.08, a quick ratio of 3.51 and a current ratio of 4.81. The company has a market capitalization of $7.49 billion, a price-to-earnings ratio of 18.72 and a beta of 0.55. FirstCash has a twelve month low of $146.77 and a twelve month high of $238.93. The firm’s 50 day moving average price is $216.47 and its 200-day moving average price is $216.00.

FirstCash Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 24th. Stockholders of record on Friday, November 13th will be paid a $0.46 dividend. The ex-dividend date is Friday, November 13th. This represents a $1.84 annualized dividend and a dividend yield of 1.1%. This is a boost from FirstCash’s previous quarterly dividend of $0.42. FirstCash’s dividend payout ratio is presently 19.18%.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. Weiss Ratings downgraded FirstCash from a “buy (b+)” rating to a “buy (b)” rating in a report on Friday. TD Cowen dropped their price target on shares of FirstCash from $242.00 to $235.00 and set a “buy” rating on the stock in a research note on Friday. Wall Street Zen lowered FirstCash from a “buy” rating to a “hold” rating in a report on Saturday, October 10th. Stephens reiterated an “overweight” rating and issued a $250.00 target price on shares of FirstCash in a report on Thursday, October 1st. Finally, Canaccord Genuity Group dropped their price target on FirstCash from $265.00 to $250.00 and set a “buy” rating on the stock in a research report on Friday. Five analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $247.50.

Insiders Place Their Bets

In other FirstCash news, Director James H. Graves sold 3,750 shares of the business’s stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $221.20, for a total value of $829,500.00. Following the completion of the transaction, the director directly owned 11,929 shares of the company’s stock, valued at approximately $2,638,694.80. The trade was a 23.92% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, COO Thomas Stuart sold 5,348 shares of the company’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $214.63, for a total value of $1,147,841.24. Following the transaction, the chief operating officer directly owned 135,498 shares in the company, valued at approximately $29,081,935.74. This represents a 3.80% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 14,098 shares of company stock valued at $3,051,281 in the last 90 days. Insiders own 2.86% of the company’s stock.

Key Headlines Impacting FirstCash

Here are the key news stories impacting FirstCash this week:

• Positive Sentiment: Record earnings and revenue: Third-quarter revenue increased 17.7% year over year to $1.10 billion, while adjusted EPS of $2.68 exceeded the $2.63 consensus estimate. GAAP net income rose 22% to $101.2 million, and adjusted EBITDA increased 18% to $213.0 million. FirstCash third-quarter results
• Positive Sentiment: Pawn operations remain strong: Revenue and segment income from the U.S., Latin American and U.K. pawn businesses each benefited from solid growth, with combined pawn revenue up 28%. Pawn receivables reached a record $908 million, while the company added 14 stores during the quarter and 42 year to date.
• Positive Sentiment: Shareholder returns increased: FirstCash raised its quarterly dividend 10% to $0.46 per share and repurchased $123 million of stock in the quarter, bringing year-to-date buybacks to $250 million.
• Positive Sentiment: Analyst remains bullish: TD Cowen reduced its price target from $242 to $235 but maintained a “Buy” rating, implying substantial potential upside based on the referenced price.
• Neutral Sentiment: Growth outlook is positive but mixed: Management expects continued double-digit growth in pawn operations and is pursuing the Ramsdens acquisition, which could add more than 175 U.K. locations. However, completion remains subject to antitrust approval and other closing conditions.
• Negative Sentiment: AFF remains a drag: Gross transaction volume in the retail POS payment-solutions segment fell 15% year over year, while net revenue declined 20%. Management expects fourth-quarter volume to decrease in the mid-teens percentage range and net revenue to fall 15%–20%, reflecting weakness in furniture and other discretionary retail.
• Negative Sentiment: Legal overhang: The Law Offices of Frank R. Cruz announced an investigation into potential securities-law violations related to company disclosures on October 22. The announcement does not establish wrongdoing, but it adds uncertainty and may weigh on sentiment. FirstCash securities investigation

About FirstCash

FirstCash Holdings, Inc is a specialty financial services and retail company that operates pawn stores in the United States and Mexico. Through its pawn operations, the company provides short-term, collateral-backed loans to consumers who pledge personal property as security. Customers can reclaim their pledged items by repaying the loan and applicable fees within the required period.

The company also generates revenue by selling merchandise that has been forfeited on pawn loans or acquired through other purchasing activities.