EZCorp (EZPW) reported record-breaking revenue of $285.6 million in the second quarter, a 10.5% increase year-over-year. This growth was driven by a 14.4% increase in pawn loans outstanding, resulting in a 15.2% rise in pawn-service charges to $107.2 million. The company also saw gains in merchandise and jewelry sales, with a 8.0% and 6.9% increase, respectively. Additionally, EZPW maintained a gross margin of 35% on sold merchandise, which exceeded analysts’ expectations and led to adjusted earnings of 28 cents per share, a 21.7% increase from the previous year.
Despite the challenging economic environment, EZPW ended the quarter with a record outstanding loan balance of $235.8 million and opened 15 new stores, including nine locations in Latin America and six acquired stores in the U.S. The company also consolidated six stores during the quarter, resulting in a net increase of nine stores. The growth in store locations is expected to benefit EZPW’s EZ+ Rewards program, which saw a 10% increase in enrolled customers to 4.6 million. This program is designed to incentivize customers to transact more and has been successful across all regions.
EZCorp (EZPW) is recommended as a stock in the Forbes Investor newsletter, which aims to identify undervalued stocks with significant upside potential. Despite a post-earnings decline of more than 6%, the stock has a history of recovering from similar setbacks and reaching new highs. Analysts anticipate continued strong operating performance from EZPW in the future, which bodes well for the company’s growth and success. Julius Juenemann, CFA, the equity analyst and associate editor of Forbes Special Situation Survey and Forbes Investor, believes in the long-term potential of EZPW and recommends it as a current investment opportunity.
Investors looking for promising stock recommendations like EZPW can access the Forbes Investor newsletter for free. The newsletter offers insights into market-beating investment opportunities and undervalued gems with significant upside potential. EZCorp (EZPW) is highlighted as a compelling investment option within the newsletter’s recommendations. By subscribing to Forbes Investor, individuals can gain access to valuable stock recommendations, including EZPW and other promising stocks in various sectors.
EZPW’s strong performance in the second quarter, with record revenue and earnings exceeding expectations, showcases the company’s ability to thrive in a challenging economic environment. The increase in pawn loans outstanding, growth in store locations, and success of the EZ+ Rewards program demonstrate EZCorp’s commitment to customer satisfaction and strategic expansion. With a focus on maintaining a strong gross margin and generating adjusted earnings growth, EZPW is positioned for continued success and potential stock price growth. Investors can look to the Forbes Investor newsletter for more information on promising stock recommendations like EZPW and other undervalued opportunities in the market.
