Pawn store operator FirstCash beats Q2 revenue estimates

Overview

• FirstCash Q2 revenue beats analyst expectations, reaching $830.6 mln, per LSEG data

• Adjusted EPS for Q2 exceeds estimates at $1.79, per LSEG data

• Co increases quarterly dividend by 11%, reflecting business confidence

Outlook

• Company expects pawn operations to drive over 80% of 2025 earnings

• FirstCash anticipates 10%-12% growth in U.S. pawn fees for 2025

• Latin America pawn revenue outlook improved due to favorable peso exchange rate

• Retail POS Payment Solutions net revenues expected to decline 6%-8% in 2025

Result Drivers

• PAWN DEMAND - Strong pawn demand with same-store pawn receivables up 13% in U.S. and Latin America, driving earnings growth

• AFF GROWTH - AFF segment posted 46% earnings increase due to improved margins and reduced operating expenses

• DIVIDEND INCREASE - Strong cash flows led to 11% increase in quarterly dividend, reflecting confidence in long-term earnings prospects

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 Firstcash Holdings Inc is $150.00, about 11% above its July 23 closing price of $133.50

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX3Vr9Dd