EZCORP Q2 adjusted EPS jumps 76% on higher gold prices, beats estimates

Overview

• U.S. pawn lender's Q2 revenue rose 46% yr/yr, driven by acquisitions and strong pawn demand

• Adjusted EPS for Q2 beat analyst expectations, rising 76% yr/yr

• Adjusted EBITDA for Q2 beat analyst expectations, up 76% yr/yr

Outlook

• EZCORP did not provide specific financial guidance for the current or future periods

Result Drivers

• ACQUISITIONS - Co said revenue and profit growth were helped by the addition of SMG and other acquired stores

• STRONG PAWN DEMAND - Higher average loan size and continued demand for pawn loans contributed to increased pawn loans outstanding and pawn service charges

• HIGHER GOLD PRICES - Increased jewelry scrap sales and margins were driven by higher gold prices and more jewelry purchases

Company press release: ID:nGNX7wXyZT

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 $34.00, about 1.8% above its May 5 closing price of $33.41

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 14 three months ago

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