Cash America International, Inc. (CSH) Tuesday cut its earnings guidance for the full year ended December 31, 2011, now expecting earnings of $4.25 per share, down from the prior expected range of between $4.28 and $4.48 per share.
On average, 10 analysts polled by Thomson Reuters expect earnings of $4.41 per share for the full year. Analysts' estimates typically exclude special items.
The new guidance represents a 16 percent improvement over fiscal 2010 earnbings of $3.67 per share.
The prior outlook was provided in July, and had not been updated since, due to the filing of a Registration Statement on Form S-1 with the SEC, with a proposed initial public offering of Enova common stock by the company and Enova. Enova International Inc is Cash America's E-commerce segment.
The company said profitability was impacted by the requirement to establish a reserve for loan losses, and higher than expected store level operating costs during the holiday selling period.
In addition, the company incurred a variety of one-time and unusual operating expenses during the fourth quarter associated with the proposed Enova initial public offering and other expense items from the closing of an acquisition.
Revenue associated with all online consumer loans increased over 40 percent during the fourth quarter.
Cash America expects revenue growth to exceed 25 percent for the fourth quarter compared to the prior-year fourth quarter. The company said the growth represents the largest year-over-year quarterly increase during 2011. The growth is attributed to growth in asset balances of both pawn and consumer loans, as well as a significant increase in revenue from the disposition of merchandise during the quarter.
Cash America will conduct a conference call to discuss its fourth quarter earnings on Thursday, January 26, 2012 at 7:00 AM CST.
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