FirstCash Holdings, Inc. (NASDAQ: FCFS), a leading operator of pawn stores and provider of retail point-of-sale payment solutions, reported record financial results for the third quarter of 2024, driven by continued robust growth in its U.S. pawn segment.
The company achieved record revenue of $837.3 million in the third quarter, a 6.5% increase from the prior-year period. Diluted earnings per share (EPS) increased by 14% to $1.67 on a GAAP basis, while adjusted diluted EPS rose 7% to $1.67, exceeding analyst expectations.
The U.S. pawn segment was the primary driver of FirstCash's strong performance, with segment pre-tax operating income increasing by 16% to $98.3 million. Pawn loan fees grew by 13%, fueled by a 10% same-store increase in pawn receivables. Retail merchandise sales in the U.S. pawn segment increased by 15%, with same-store retail sales rising 7%.
In the Latin America pawn segment, results were impacted by an 11% decline in the Mexican peso exchange rate, leading to a 6% decrease in segment pre-tax operating income on a U.S. dollar basis. However, on a constant currency basis, segment income increased by 2%, reflecting continued growth in local currency pawn revenues and receivables.
The company's retail point-of-sale payment solutions segment, American First Finance (AFF), saw a 14% increase in gross transaction volume during the quarter, driven by a 25% rise in active merchant door counts. However, segment pre-tax operating income declined by 23% due to higher provisioning for lease and loan losses.
Comments