Consumer financial services provider First Cash Financial Services Inc. (FCFS) said Tuesday it turned to profit in the third quarter from a loss last year, reflecting a hefty loss from discontinued operations in the prior year. Earnings from continuing operations grew over 20% and exceeded consensus estimates, helped mainly by strong core pawn businesses in the US and Mexico. In addition, the company raised its full year forecast for earnings per share from continuing operations. For the third quarter, the Arlington, Texas-based company posted net income of $11.97 million or $0.39 per share, compared to a net loss of $46.41 million or $1.54 per share in the same quarter last year. Income from continuing operations for the quarter increased to $10.61 million or $0.35 per share from $8.73 million or $0.29 per share in the previous year. On average, seven analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items. In the prior-year quarter, the company had posted a loss from discontinued operations of $55.14 million. Earnings per share from discontinued operations for the recent quarter were $0.04, primarily due to strong cash collections of Auto Master customer receivables, which was held as a discontinued asset.
Revenues from continuing operations for the quarter grew 13% to $94.65 million from $83.79 million in the earlier year. At constant currency basis, the increase was 20%. Four analysts had a consensus revenue estimate of $88.27 million for the quarter. Net revenues were $55.46 million, up from $50.92 million in the same quarter last year. Pawn merchandise sales increased to $56.1 million from $47.81 million a year ago. Pawn service fees were $21.8 million, up from $18.56 million last year. Short-term loan and credit services fees were $16.01 million, compared to $16.58 million in the comparable quarter a year ago. Other revenues decreased to $745 thousand from $832 thousand in the prior year. Same-store sales increased by 9% for the quarter on a constant currency basis in the company's U.S. and Mexico pawn stores. Same-store sales declined by 8% in the U.S. short- term/payday loan stores.
For the nine-month period, the company posted net income of $34.77 million or $1.15 per share, compared to a net loss of $33.01 million or $1.09 per share in the prior-year period. Income from continuing operations increased to $29.65 million or 0.98 per share from $27.63 million or $0.91 per share in the prior-year period. Revenues for the period grew 9% to $261.42 million from $239.73 million a year ago. Net revenues were $157.31 million, compared to $148.24 million in the preceding year. In addition, the company raised its fiscal 2009 forecast for earnings per share from continuing operations to a range of $1.37 - $1.39 from its prior range of $1.36 - $1.38 per share. The increased guidance range implies an estimated earnings growth rate of about 12% to 15% over the second half of the fiscal, the company noted. Analysts currently expect fiscal 2009 earnings of $1.38 per share.
Rick Wessel, chief executive officer said, "We continued to experience significant growth in our fully collateralized pawn loan portfolio during the third quarter, which positions us well for continued revenue growth in the fourth quarter. As a result, we have increased our earnings guidance for 2009." FCFS closed Monday's regular trading at $17.37 on the Nasdaq.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.