Nomura Securities on U.S. Specialty Consumer Lenders: Q2 Earnings Wrap for EZPW & CSH
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Rating Summary:
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Today's Overall Ratings:
Up: 14 | Down: 17 | New: 4
Rating Summary:
7 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 17 | New: 4
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Nomura Securities on U.S. Specialty Consumer Lenders: Q2 Earnings Wrap
Analyst, Bill Carcache, said, "2Q12 Earnings Wrap: Pawn lending showed signs of a slowdown during the quarter, with US centric names experiencing weaker growth in loans and service charges. This quarter all three names reported weak scrap sales results and moderately disappointing retail sales results. In scrap, CSH reported a significant decline in margins (scrap margins declined 750bps YoY). The company appears to be offering higher LTV loans relative to EZPW. EZPW lowered its LTVs in response to softer gold prices, while we believe CSH has maintained relatively elevated LTVs in an effort to drive loan demand. Online lending posted impressive growth, while brick-and-mortar operations lagged."
EZCORP, Inc. (Nasdaq: EZPW) (Buy $33): PT to $29 from $33; F12E EPS from $2.83 to $2.82; F13E EPS from $3.28 to $3.23; F14E EPS from $3.84 to $3.75.
Cash America (NYSE: CSH) (Neutral $50): PT to $40 from $50; F12E EPS from $5.00 to $4.57; F13E EPS from $5.70 to $5.31; F14E EPS from $6.48 to $6.39.
Analyst, Bill Carcache, said, "2Q12 Earnings Wrap: Pawn lending showed signs of a slowdown during the quarter, with US centric names experiencing weaker growth in loans and service charges. This quarter all three names reported weak scrap sales results and moderately disappointing retail sales results. In scrap, CSH reported a significant decline in margins (scrap margins declined 750bps YoY). The company appears to be offering higher LTV loans relative to EZPW. EZPW lowered its LTVs in response to softer gold prices, while we believe CSH has maintained relatively elevated LTVs in an effort to drive loan demand. Online lending posted impressive growth, while brick-and-mortar operations lagged."
EZCORP, Inc. (Nasdaq: EZPW) (Buy $33): PT to $29 from $33; F12E EPS from $2.83 to $2.82; F13E EPS from $3.28 to $3.23; F14E EPS from $3.84 to $3.75.
Cash America (NYSE: CSH) (Neutral $50): PT to $40 from $50; F12E EPS from $5.00 to $4.57; F13E EPS from $5.70 to $5.31; F14E EPS from $6.48 to $6.39.
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