EZCORP shares rise after fourth-quarter report on strong core pawn revenue

what happened

According to Seeking Alpha, EZCORP shares climbed after the company reported results for the fourth fiscal quarter ended September 30. In after-hours trading the stock was up 10.6% at $31.30.

Adjusted diluted earnings per share rose 23% from a year earlier to $0.43, in line with the Visible Alpha consensus. Adjusted EBITDA increased 33% to $64.0 million, compared with a consensus of $63.78 million. Total revenue reached $447.1 million, up from $336.8 million a year earlier and above the average analyst estimate of $428.15 million.

Core pawn revenue rose to $383.39 million. Merchandise sales climbed to $220.70 million, slightly below consensus. Jewelry scrap sales jumped 86% to $63.64 million, helped by higher gold prices and jewelry purchases. Same-store pawn loan operating metrics grew 13% in the U.S. and 25% in Latin America.

why it matters

The key takeaway for markets is that the core pawn business is growing steadily, while the gold-linked scrap contribution may ease as margins in that segment normalize, management said. Investors will also watch the company's plans for new stores and acquisitions.

market impact

EZCORP shares: revenue above expectations supports the stock

• ▲EZCORP shares pressure up — quarterly revenue and earnings came in above analyst expectations

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