FirstCash (NASDAQ:FCFS) Posts Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• FirstCash beat quarterly earnings expectations by reporting $2.50 EPS, topping the consensus estimate of $2.39 by $0.11. Earnings also improved sharply from $1.34 per share in the same quarter last year.
• Revenue rose 29.4% year over year, showing strong top-line growth alongside the earnings beat. The company also posted a return on equity of 18.68% and a net margin of 9.15%.
• Shares fell on the day of the report, trading down to $197.44 despite the solid results. Analyst sentiment remains mixed, with a consensus rating of “Moderate Buy” and an average price target of $199.25.

FirstCash (NASDAQ:FCFS - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $2.50 earnings per share for the quarter, beating analysts' consensus estimates of $2.39 by $0.11, Zacks reports. FirstCash had a return on equity of 18.68% and a net margin of 9.15%.During the same period in the prior year, the business posted $1.34 EPS. FirstCash's revenue for the quarter was up 29.4% compared to the same quarter last year.

FirstCash Stock Performance

Shares of NASDAQ FCFS traded down $11.30 during trading hours on Thursday, hitting $197.44. 189,822 shares of the company's stock were exchanged, compared to its average volume of 360,998. The company's 50-day moving average price is $220.78 and its 200-day moving average price is $200.84. FirstCash has a 1-year low of $119.21 and a 1-year high of $235.97. The stock has a market capitalization of $8.66 billion, a price-to-earnings ratio of 24.78 and a beta of 0.53. The company has a debt-to-equity ratio of 0.98, a current ratio of 4.77 and a quick ratio of 3.42.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on FCFS. Weiss Ratings cut FirstCash from a "buy (a-)" rating to a "buy (b+)" rating in a research report on Monday, April 27th. Zacks Research lowered shares of FirstCash from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, June 23rd. TD Cowen boosted their price objective on shares of FirstCash from $235.00 to $240.00 and gave the stock a "buy" rating in a research note on Tuesday, July 7th. Canaccord Genuity Group upped their price objective on shares of FirstCash from $242.00 to $252.00 and gave the stock a "buy" rating in a report on Friday, April 24th. Finally, Wall Street Zen downgraded shares of FirstCash from a "strong-buy" rating to a "buy" rating in a report on Sunday, May 10th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $199.25.

Insider Transactions at FirstCash

In other news, CFO R Douglas Orr sold 2,000 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $227.29, for a total value of $454,580.00. Following the completion of the sale, the chief financial officer directly owned 35,734 shares of the company's stock, valued at approximately $8,121,980.86. This represents a 5.30% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Thomas Brent Stuart sold 10,000 shares of the firm's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $228.49, for a total transaction of $2,284,900.00. Following the completion of the sale, the chief operating officer owned 140,846 shares in the company, valued at approximately $32,181,902.54. The trade was a 6.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 27,500 shares of company stock worth $6,243,104. Insiders own 2.86% of the company's stock.

Hedge Funds Weigh In On FirstCash

Large investors have recently bought and sold shares of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in FirstCash by 4.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 22,946 shares of the company's stock worth $2,761,000 after purchasing an additional 1,021 shares during the last quarter. Goldman Sachs Group Inc. raised its position in shares of FirstCash by 9.7% during the first quarter. Goldman Sachs Group Inc. now owns 389,509 shares of the company's stock valued at $46,866,000 after buying an additional 34,364 shares during the last quarter. Jane Street Group LLC raised its position in shares of FirstCash by 237.2% during the first quarter. Jane Street Group LLC now owns 62,057 shares of the company's stock valued at $7,467,000 after buying an additional 43,653 shares during the last quarter. American Century Companies Inc. lifted its stake in shares of FirstCash by 4.9% in the second quarter. American Century Companies Inc. now owns 14,187 shares of the company's stock valued at $1,917,000 after buying an additional 666 shares during the period. Finally, Arrowstreet Capital Limited Partnership lifted its stake in shares of FirstCash by 67.4% in the second quarter. Arrowstreet Capital Limited Partnership now owns 20,872 shares of the company's stock valued at $2,821,000 after buying an additional 8,402 shares during the period. 80.30% of the stock is currently owned by institutional investors and hedge funds.

FirstCash Company Profile

FirstCash, Inc NASDAQ: FCFS is a leading integrated operator of pawn stores and provider of short-term consumer loan services in the United States and Mexico. Through its retail pawn outlets, FirstCash offers collateral-based loans secured by personal property, enabling customers to access liquidity without a credit history or traditional bank account. The company also purchases, trades and sells a broad range of secondhand merchandise, including electronics, jewelry and power tools, through its network of conveniently located stores.

In addition to its pawn-broking activities, FirstCash provides unsecured consumer loans designed to meet urgent cash needs.

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