EZCORP Q4 adjusted EPS beats estimates driven by higher pawn service charge

Overview

• Pawn transactions provider EZCORP Q4 revenue rises 14% to $336.8 mln, driven by higher pawn service charges

• Adjusted EPS for Q4 beats analyst estimates, rising 36% to $0.34

• Adjusted EBITDA for Q4 increases 33% to $47.9 mln, exceeding analyst expectations

Outlook

• EZCORP plans to focus on high-return store growth and M&A

Result Drivers

• PLO GROWTH - Pawn loans outstanding increased 12% to $307.5 mln, driven by higher average loan sizes and strong pawn demand

• STORE EXPANSION - Expanded footprint by 24 stores, including 17 de novo stores and 8 acquired stores, contributing to revenue growth

• JEWELRY SCRAP SALES - Jewelry scrap sales increased 91% in Q4, driven by higher gold prices and increased jewelry purchases

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the consumer lending peer group is "buy"

• Wall Street's median 12-month price target for EZCORP Inc is $23.00, about 21.7% above its November 12 closing price of $18.00

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX9DF610

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