Nomura Securities Maintains a 'Buy' on EZCORP (EZPW); Q3 Review
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Price: $29.49 +2.93%
Rating Summary:
10 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 7
Rating Summary:
10 Buy, 5 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 7
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Nomura Securities maintains a 'Buy' on EZCORP (NASDAQ: EZPW) price target lowered to $33.00.
Analyst, Bill Carcache, said, "EZPW reported 3Q12 EPS of $0.56 versus our estimate of $0.64 and consensus of $0.62. The miss was largely driven by a greater-than expected decrease in scrap volumes, which pressured scrap revenues (jewelry scrap sales fell to 9.6% of consolidated net revenues in the 06/2012 quarter versus 15.0% during the same period last year, creating a net revenue headwind of $6 million or $0.08 per share). The decline in scrap volumes was driven by an increase in jewelry redemption rates, which hit 86% in the June quarter. While we understand that investors view recent changes in gold price and volume metrics as cause for concern and acknowledge that EZPW is likely to face difficult YoY comparisons until it laps the scrap volume declines we saw this quarter, we continue to believe that its consumer lending businesses are fundamentally strong and think shares are attractively valued at current levels, which implies ~7.1x 2013 consensus EPS."
FY 12E EPS from USD 2.88 to USD 2.83; FY 13E EPS from USD 3.34 to USD 3.28.
For an analyst ratings summary and ratings history on EZCORP click here. For more ratings news on EZCORP click here.
Shares of EZCORP closed at $23.73 yesterday.
Analyst, Bill Carcache, said, "EZPW reported 3Q12 EPS of $0.56 versus our estimate of $0.64 and consensus of $0.62. The miss was largely driven by a greater-than expected decrease in scrap volumes, which pressured scrap revenues (jewelry scrap sales fell to 9.6% of consolidated net revenues in the 06/2012 quarter versus 15.0% during the same period last year, creating a net revenue headwind of $6 million or $0.08 per share). The decline in scrap volumes was driven by an increase in jewelry redemption rates, which hit 86% in the June quarter. While we understand that investors view recent changes in gold price and volume metrics as cause for concern and acknowledge that EZPW is likely to face difficult YoY comparisons until it laps the scrap volume declines we saw this quarter, we continue to believe that its consumer lending businesses are fundamentally strong and think shares are attractively valued at current levels, which implies ~7.1x 2013 consensus EPS."
FY 12E EPS from USD 2.88 to USD 2.83; FY 13E EPS from USD 3.34 to USD 3.28.
For an analyst ratings summary and ratings history on EZCORP click here. For more ratings news on EZCORP click here.
Shares of EZCORP closed at $23.73 yesterday.
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