Nomura Securities Maintains a 'Neutral' on Cash America International (CSH); Q2 Misses, But We Raises FY12/13 EPS on...
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Price: $25.63 --0%
Rating Summary:
2 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
2 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Cash America International (NYSE: CSH) price target of $50.00.
Analyst, Bill Carcache, said, "CSH reported 2Q12 EPS of $0.94, below our / consensus estimates of $0.97 / $0.96, respectively. The miss was driven mainly by lower-than expected net revenues. CSH also initiated 2012 EPS guidance of $4.35- $4.60, a relative disappointment versus consensus of $4.98. More important than the quarter’s results was the commentary around pawn lending in the United States. These observations give rise to the concern that the market for overall pawn loans is shrinking. In particular, the fact that CSH is seeing softer loan demand while maintaining competitive pricing (through higher LTVs) suggests that consumer appetite for pawn loans may be waning. The unsecured consumer lending business performed strongly this quarter. As has been the story in recent quarters, the eCommerce channel continued to lead the charge, picking up slack in the storefront business. Ecommerce net consumer fees grew +33.4%, up from +31.6% in the year-ago quarter. Overall, we’re encouraged that consumer lending fees net of losses continued to deliver strong results this quarter."
FY12E EPS from $4.95 to $5.00; FY13E EPS from $5.65 to $5.70.
For an analyst ratings summary and ratings history on Cash America International click here. For more ratings news on Cash America International click here.
Shares of Cash America International closed at $36.69 yesterday.
Analyst, Bill Carcache, said, "CSH reported 2Q12 EPS of $0.94, below our / consensus estimates of $0.97 / $0.96, respectively. The miss was driven mainly by lower-than expected net revenues. CSH also initiated 2012 EPS guidance of $4.35- $4.60, a relative disappointment versus consensus of $4.98. More important than the quarter’s results was the commentary around pawn lending in the United States. These observations give rise to the concern that the market for overall pawn loans is shrinking. In particular, the fact that CSH is seeing softer loan demand while maintaining competitive pricing (through higher LTVs) suggests that consumer appetite for pawn loans may be waning. The unsecured consumer lending business performed strongly this quarter. As has been the story in recent quarters, the eCommerce channel continued to lead the charge, picking up slack in the storefront business. Ecommerce net consumer fees grew +33.4%, up from +31.6% in the year-ago quarter. Overall, we’re encouraged that consumer lending fees net of losses continued to deliver strong results this quarter."
FY12E EPS from $4.95 to $5.00; FY13E EPS from $5.65 to $5.70.
For an analyst ratings summary and ratings history on Cash America International click here. For more ratings news on Cash America International click here.
Shares of Cash America International closed at $36.69 yesterday.
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