Cash America shares tumble on lower earnings outlook
Fort Worth-based pawn shop operator Cash America International saw its shares (ticker: CSH) slip more than 10 percent in early trading as its updated fourth-quarter outlook and 2014 outlook came in well below Wall Street expectations. The company said it expected to earn 95 cents to $1.05 a share in the fourth quarter, compared to $1.20 consensus estimate by financial analysts as $1.29 in the same quarter of 2012. It made its first 2014 earning outlook, estimating earnings between $4.20 and $4.40 a share for the year. That compared to an average Wall Street estimate of $4.91 a share.
The company's third-quarter earnings released Thursday were in line with analysts' estimates. Cash America reported net income of $46.2 million, or $1.52 a share, which included several unusual items, on $438 million in revenue. After adjusting for the unusual items, the company earned $24.3 million, or 80 cents a share, near Wall Street's estimate of 81 cents. In its outlook for the fourth quarter and 2014, the company said it expects "growth in the company's pawn lending business, but its expectations for the balance of 2013 and into 2014 remain below historical growth rates in the pawn lending business."
-- Jim Fuquay