EZCORP (NASDAQ:EZPW) Posts Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• EZCORP reported quarterly EPS of $0.47, beating analyst expectations by $0.06, while revenue of $408.4 million fell short of the $425.83 million consensus estimate.
• Shares dropped 3.9% to $29.78 following the results, despite the company posting a 13.45% return on equity and a 9.91% net margin.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $38.80; however, insiders have sold 40,000 shares worth approximately $1.35 million over the past 90 days.

EZCORP (NASDAQ:EZPW - Get Free Report) released its quarterly earnings data on Wednesday. The credit services provider reported $0.47 EPS for the quarter, topping analysts' consensus estimates of $0.41 by $0.06, FiscalAI reports. The business had revenue of $408.40 million during the quarter, compared to the consensus estimate of $425.83 million. EZCORP had a return on equity of 13.45% and a net margin of 9.91%.

EZCORP Stock Down 3.9%

NASDAQ EZPW traded down $1.22 during trading hours on Wednesday, hitting $29.78. The company had a trading volume of 976,875 shares, compared to its average volume of 903,893. The firm's 50 day moving average is $32.04 and its 200 day moving average is $28.93. The company has a debt-to-equity ratio of 0.45, a current ratio of 4.71 and a quick ratio of 3.52. EZCORP has a fifty-two week low of $14.81 and a fifty-two week high of $37.13. The company has a market capitalization of $1.83 billion, a price-to-earnings ratio of 16.18 and a beta of 0.66.

Insider Transactions at EZCORP

In related news, Director Pablo Lagos Espinosa sold 10,000 shares of the firm's stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $35.54, for a total transaction of $355,400.00. Following the sale, the director directly owned 207,543 shares in the company, valued at approximately $7,376,078.22. This trade represents a 4.60% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jason A. Kulas sold 20,000 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $33.56, for a total value of $671,200.00. Following the transaction, the director directly owned 172,948 shares in the company, valued at $5,804,134.88. This trade represents a 10.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 40,000 shares of company stock worth $1,346,600. 2.13% of the stock is currently owned by insiders.

Institutional Trading of EZCORP

A number of hedge funds have recently made changes to their positions in EZPW. Deutsche Bank AG boosted its stake in shares of EZCORP by 533.5% in the fourth quarter. Deutsche Bank AG now owns 2,667 shares of the credit services provider's stock valued at $52,000 after purchasing an additional 2,246 shares during the period. State of Wyoming increased its stake in EZCORP by 178.1% during the 2nd quarter. State of Wyoming now owns 11,069 shares of the credit services provider's stock worth $154,000 after buying an additional 7,089 shares during the period. Palisade Capital Management LP purchased a new stake in EZCORP during the 2nd quarter worth $179,000. Sciencast Management LP acquired a new position in EZCORP in the 4th quarter worth $212,000. Finally, Creative Planning lifted its holdings in EZCORP by 19.8% in the 3rd quarter. Creative Planning now owns 12,472 shares of the credit services provider's stock worth $237,000 after buying an additional 2,064 shares in the last quarter. Hedge funds and other institutional investors own 99.83% of the company's stock.

Analyst Upgrades and Downgrades

EZPW has been the topic of a number of research analyst reports. Citigroup reiterated an "outperform" rating on shares of EZCORP in a report on Monday, May 11th. Weiss Ratings restated a "buy (a-)" rating on shares of EZCORP in a research note on Monday, July 6th. Wall Street Zen raised EZCORP from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 25th. Canaccord Genuity Group set a $44.00 target price on EZCORP in a report on Friday, May 8th. Finally, Citizens Jmp increased their target price on shares of EZCORP from $33.00 to $39.00 and gave the stock a "market outperform" rating in a research report on Monday, May 11th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $38.80.

EZCORP Company Profile

EZCORP, Inc is a specialty consumer finance company that provides pawn loans and retail merchandise programs primarily through its EZPAWN and Cash Converters brands. The company offers collateral-based loans secured principally by jewelry, electronics, musical instruments and other personal items, alongside check-cashing, money-transfer and bill-payment services. In addition to its pawn lending operations, EZCORP acquires previously pawned or consumer merchandise for resale through its “Sell-It-Now” platform and retail storefronts.

Founded in 1989 and headquartered in San Antonio, Texas, EZCORP operates in two principal geographic markets: the United States and Mexico.

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