EZCORP Q4 adjusted EPS, EBITDA beat estimates amid store expansion

Overview

• US pawn operator's Q4 revenue rose 33% yr/yr to $447.1 mln

• Adjusted EPS for Q4 beat analyst expectations

• Adjusted EBITDA for Q4 beat analyst expectations

Outlook

• EZCORP did not provide specific financial guidance for the current quarter or full year

Result Drivers

• CORE PAWN GROWTH - Increased pawn loans outstanding and higher average loan size, especially on jewelry collateral, drove Q4 results

• STORE EXPANSION - Results benefited from 41 new stores in Q4, including acquisitions and de novo openings, with SMG fully consolidated

• JEWELRY SCRAP SALES - Higher gold prices and increased jewelry purchases boosted Q4 jewelry scrap sales, though margins declined

Company press release:

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", 1 "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 $40.00, about 39% above its November 10 closing price of $28.77

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)