First Cash Financial Services (FCFS) Tops Q1 EPS by 7c, Raises FY Guidance

First Cash Financial Services (NASDAQ: FCFS) reported Q1 EPS of $0.67, $0.07 better than the analyst estimate of $0.60. Revenue for the quarter came in at $447.58 million versus the consensus estimate of $436.6 million.

GUIDANCE:

First Cash Financial Services sees FY2017 EPS of $2.50-$2.65, versus the consensus of $2.53.

Fiscal 2017 Outlook

• The Company is increasing its fiscal full-year 2017 guidance for adjusted earnings per share, a non-GAAP measure that excludes Merger related expenses and other adjustments, to be in the range of $2.50 to $2.65. This compares to its prior adjusted annual guidance given on February 2, 2017 of $2.45 to $2.60 per share. Although the outlook for 2017 is improved by the recent strengthening of the Mexican peso, the estimated average exchange rate used in the Company’s guidance is still below prior year levels. Partially offsetting the improvement in foreign currency estimates, the Company has reduced its expectations for pawn fee revenues in its domestic locations, given the lower pawn loan balances in the legacy Cash America stores entering the second quarter.
• The guidance for fiscal 2017 is presented on a non-GAAP basis, as it does not include the impact of expenses related to the Merger or any future acquisitions. Given the difficulty in predicting the amount and timing of these expenses, the Company cannot reasonably provide a full reconciliation of adjusted earnings per share to GAAP earnings per share.
• The Company’s updated guidance also includes the following additional estimates:
  • The guidance for the second quarter of 2017 is $0.42 to $0.47 of adjusted earnings per share.
  • 2017 adjusted net income, a non-GAAP measure that excludes Merger related expenses and other adjustments, is projected to be in the range of approximately $121 million to $128 million versus 2016 adjusted net income of $85 million.
  • The 2017 earnings guidance range implies adjusted EBITDA, also a non-GAAP measure, to be in the range of approximately $266 million to $277 million for fiscal 2017. This compares to adjusted EBITDA of $180 million in fiscal 2016 and $132 million in fiscal 2015.

For earnings history and earnings-related data on First Cash Financial Services (FCFS) click here.

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