FirstCash (FCFS) stock is surging 5.44% in pre-market trading on Thursday following the company's announcement of exceptional third-quarter results that surpassed analyst expectations. The pawn store operator and consumer finance company reported robust growth across all segments, driven by strong pawn demand and the recent acquisition of H&T pawn stores in the UK.
The company reported Q3 revenue of $935.58 million, significantly beating the consensus estimate of $850 million. Adjusted earnings per share (EPS) came in at $2.26, well above the expected $1.97. This represents a 35.33% increase from the same period last year when EPS was $1.67. The strong performance was attributed to high pawn demand across U.S., Latin America, and UK markets, as well as the contribution from the recently acquired H&T pawn stores.
In addition to the impressive financial results, FirstCash announced a quarterly dividend of $0.42 per share and authorized a new $150 million share repurchase plan. The company also raised its full-year revenue growth expectations for both U.S. and Latin American operations. Investors are particularly encouraged by the outlook for Q4, with the company expecting H&T earnings accretion of $0.18 to $0.20 per share. These factors combined are driving the significant pre-market rally in FirstCash shares, as the market responds positively to the company's strong performance and optimistic future outlook.
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