Cash America earnings slip on gold sales
The decline in scrap gold prices cut into Cash America International's second-quarter earnings as the pawn shop chain reported net income of $25.1 million, or 81 cents a share, on revenues of $411 million. That compared to earnings of $29.2 million, or 94 cents a share, on $411.6 million in revenues the same quarter a year earlier. Earnings fell short of its own previous guidance and of Wall Street's consensus estimate of 84 cents a share, and the Fort Worth-based company's shares were down about 7 percent in morning trading. Cash America said the decline "is primarily attributable to a decline in gross profit on disposition proceeds primarily associated with the commercial sales of refined gold" by its pawn stores. It said the shortfall from its previous outlook was "primarily due to reduced customer demand for loan products" at its U.S. locations, higher personnel expenses and additional interest related to debt issued in early May.
-- Jim Fuquay