Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
FORT WORTH, Texas - FirstCash (NASDAQ:FCFS) Holdings, Inc. (NASDAQ: FCFS), a global leader in pawn operations and point-of-sale payment solutions, reported increased revenues and net income for Q2 2024. The company, operating over 3,000 pawn stores and offering retail POS payment solutions through American First Finance (AFF), saw a 25% rise in U.S. pawn segment income and solid earnings in both LatAm pawn and AFF segments.
Gross revenues hit $831 million in Q2, marking an 11% year-over-year rise, while net revenues climbed 12%. The six-month figures were also strong, with revenues reaching $1.7 billion, a 10% increase from the previous year, and net revenues growing by 13%. Diluted earnings per share for Q2 rose by 9% on a GAAP basis, with adjusted diluted earnings per share up by 12%.
The company's expansion strategy continued with the addition of 47 new pawn locations in Q2 through acquisitions and openings, bringing the year-to-date total to 67. The U.S. saw 26 stores added through acquisitions in North Carolina, Texas, and Florida, with one new store in Las Vegas. In Latin America, 20 new stores opened, primarily in Mexico, Guatemala, and El Salvador.
FirstCash's balance sheet remains robust, with $439 million in operating cash flows and $220 million in adjusted free cash flows for the twelve months ending June 30, 2024. The company invested significantly in growth, with $241 million spent on pawn store acquisitions and $57 million on real estate investments.
Reflecting confidence in its financial health and prospects, FirstCash's Board of Directors declared a quarterly cash dividend of $0.38 per share, a 9% increase from the previous dividend. Additionally, the company repurchased $85 million in stock this quarter and has $115 million available under its share repurchase program.
For 2024, FirstCash forecasts continued revenue and earnings growth, driven by earning asset balance growth and recent store additions. The company targets adding approximately 90 to 100 pawn locations through new store openings and acquisitions.
This financial summary is based on a press release statement from FirstCash Holdings, Inc.
In other recent news, First Cash Financial has been the focus of several analyst actions and company developments.
Loop Capital maintained a Buy rating on the company's stock, expecting higher-than-consensus earnings per share (EPS) for the second quarter and the full year 2024. The firm's analysis indicates key performance indicators such as pawn loan fee growth and gross transaction volume growth of American First Finance (AFF) will be crucial in the upcoming earnings report.
Meanwhile, BTIG initiated coverage on First Cash Financial with a Neutral rating, citing consistent growth and expanding margins in its pawn business. The firm anticipates continued trends of over 20% pawn fee growth in the U.S., driven by same-store sales growth and new store openings.
On the other hand, TD Cowen reduced the company's stock price target but maintained a Buy rating following an earnings report that surpassed the firm's expectations but fell short of the consensus revenue forecast. The firm also upgraded First Cash Financial from Hold to Buy, highlighting a strong operating environment, particularly in the U.S. pawn sector.
At the company's Annual Meeting of Stockholders, the election of directors, ratification of RSM LLP as the independent auditor, and approval of executive compensation were significant developments. These are recent developments that provide investors with an understanding of First Cash Financial's current position.
InvestingPro Insights
FirstCash Holdings, Inc. (NASDAQ: FCFS) has demonstrated a commendable track record of financial growth and stability, as evidenced by the recent positive report on its Q2 2024 performance. In light of this, certain metrics and InvestingPro Tips can provide additional insight into the company's financial health and future prospects.
The company's market capitalization stands at a solid $5 billion, reflecting investor confidence and a substantial presence in the industry. Furthermore, FirstCash boasts a Price/Earnings (P/E) ratio of 21.34, which has adjusted to 20.01 over the last twelve months as of Q1 2024. This suggests that the company is valued favorably relative to its earnings, potentially attracting value-oriented investors.
The revenue growth of 13.9% over the last twelve months as of Q1 2024 underscores the company's ability to increase its sales and market share, aligning with the reported 25% rise in U.S. pawn segment income and overall solid earnings. Additionally, the gross profit margin of 61.55% indicates strong operational efficiency and the ability to maintain profitability.
An InvestingPro Tip highlights that FirstCash has raised its dividend for 8 consecutive years, which, along with maintaining dividend payments for 9 consecutive years, signals a commitment to returning value to shareholders. This is further supported by the recent increase in quarterly cash dividends announced by the company.
Investors seeking more in-depth analysis and additional InvestingPro Tips for FirstCash can explore the full range of insights available on the platform. For instance, there are currently 6 additional tips listed in InvestingPro, which can be accessed at https://www.investing.com/pro/FCFS. These tips may include further details on earnings revisions, profitability predictions, and liquidity assessments that are crucial for making informed investment decisions.
To enhance your investment research experience, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription at InvestingPro. This offer could provide valuable savings as you access the comprehensive analysis tools and resources available on the platform.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.