World Acceptance (NASDAQ:WRLD) Announces Earnings Results, Misses Estimates By $2.25 EPS

Key Points

• World Acceptance (NASDAQ:WRLD) reported a quarterly earnings loss of ($0.38) EPS, missing estimates by $2.25, while revenue was above expectations at $134.47 million.
• Following the earnings announcement, shares fell $18.67 to $159.09, with a market cap of $867.01 million and a P/E ratio of 10.76.
• Analysts have mixed views, with one maintaining a Buy rating and two assigning a Hold rating; the consensus rating is currently "Hold" with an average price target of $10.00.

World Acceptance (NASDAQ:WRLD - Get Free Report) released its quarterly earnings results on Thursday. The credit services provider reported ($0.38) earnings per share for the quarter, missing analysts' consensus estimates of $1.87 by ($2.25), Zacks reports. The business had revenue of $134.47 million during the quarter, compared to analyst estimates of $127.85 million. World Acceptance had a return on equity of 18.95% and a net margin of 14.29%.

World Acceptance Stock Performance

Shares of NASDAQ WRLD traded down $18.67 during midday trading on Thursday, reaching $159.09. 18,734 shares of the company were exchanged, compared to its average volume of 40,229. The company has a current ratio of 17.83, a quick ratio of 17.83 and a debt-to-equity ratio of 1.10. World Acceptance has a 1 year low of $104.99 and a 1 year high of $185.48. The stock has a fifty day simple moving average of $172.51 and a 200 day simple moving average of $158.20. The stock has a market cap of $867.01 million, a P/E ratio of 10.76 and a beta of 1.35.

Analysts Set New Price Targets

WRLD has been the subject of a number of analyst reports. Wall Street Zen cut World Acceptance from a "strong-buy" rating to a "hold" rating in a report on Saturday, July 26th. Weiss Ratings raised World Acceptance from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, October 8th. Finally, Zacks Research raised World Acceptance from a "strong sell" rating to a "hold" rating in a report on Monday, September 22nd. One analyst has rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $10.00.

Insider Activity

In related news, SVP Alice Lindsay Caulder sold 1,000 shares of the firm's stock in a transaction dated Wednesday, September 17th. The stock was sold at an average price of $167.33, for a total transaction of $167,330.00. Following the transaction, the senior vice president owned 16,515 shares of the company's stock, valued at $2,763,454.95. This trade represents a 5.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Daniel Clinton Dyer sold 4,704 shares of the firm's stock in a transaction dated Wednesday, July 30th. The stock was sold at an average price of $159.50, for a total value of $750,288.00. Following the transaction, the insider directly owned 42,714 shares in the company, valued at approximately $6,812,883. This represents a 9.92% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 356,559 shares of company stock valued at $61,548,969. Insiders own 41.60% of the company's stock.

Institutional Investors Weigh In On World Acceptance

A number of institutional investors have recently added to or reduced their stakes in WRLD. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in World Acceptance by 4.0% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,044 shares of the credit services provider's stock valued at $259,000 after purchasing an additional 78 shares in the last quarter. Empowered Funds LLC boosted its holdings in World Acceptance by 4.1% in the 1st quarter. Empowered Funds LLC now owns 23,422 shares of the credit services provider's stock valued at $2,964,000 after purchasing an additional 925 shares in the last quarter. JPMorgan Chase & Co. boosted its holdings in World Acceptance by 16.7% in the 2nd quarter. JPMorgan Chase & Co. now owns 28,651 shares of the credit services provider's stock valued at $4,731,000 after purchasing an additional 4,092 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in World Acceptance by 23.0% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 26,865 shares of the credit services provider's stock valued at $4,436,000 after purchasing an additional 5,025 shares in the last quarter. Finally, First Trust Advisors LP boosted its holdings in World Acceptance by 0.8% in the 2nd quarter. First Trust Advisors LP now owns 10,600 shares of the credit services provider's stock valued at $1,750,000 after purchasing an additional 82 shares in the last quarter. Hedge funds and other institutional investors own 83.63% of the company's stock.

About World Acceptance

World Acceptance Corporation engages in consumer finance business in the United States. The company provides short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It offers income tax return preparation and filing services; and automobile club memberships.

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