By Kristin Jones
EZCORP Inc.'s (EZPW) fiscal fourth-quarter profit rose 6.1% as
the pawn shop operator posted strong revenue growth from
merchandise sales and service charges.
But EZCORP said that weakness in the gold market and regulatory
pressures in Texas would drag down earnings. In after-hours
trading, shares dropped 7% to $19.30. The stock is down 21% so far
this year.
For the current year, the company expects per-share earnings of
$2.55 to $2.80, lower than the $3.22 estimate from analysts polled
by Thomson Reuters. For the fiscal first quarter, EZCORP expects
per-share earnings of 55 cents to 60 cents, while analysts
projected a profit of 82 cents a share.
EZCORP operates more than 1,200 pawn shops and quick-cash loan
locations in the U.S., Mexico and Canada. The company has
consistently reported stronger bottom-line results and revenue
growth.
The company also said Tuesday that it has inked an agreement
with Western Union Co. (WU) that will give customers access to
Western Union's money transfer, money order and bill payment
services at 900 EZCORP-operated stores.
For the quarter ended Sept. 30, EZCORP reported a profit of
$38.6 million, or 75 cents a share, up from a year-earlier profit
of $36.4 million, or 72 cents a share. Revenue rose 10% to $258.4
million. Analysts were expecting per-share earnings of 75 cents on
revenue of $257 million.
Merchandise sales, the biggest top line contributor, grew 14% to
$77.6 million, while pawn service charges rose 13%. Jewelry
scrapping sales fell 10%, and revenue from consumer loan fees rose
27%.
Write to Kristin Jones at kristin.jones@dowjones.com
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