FirstCash (FCFS, Financial) has announced an impressive financial performance for the first quarter, reporting revenue of $836.42 million, slightly exceeding market expectations of $835.61 million. The company's remarkable results stem primarily from robust growth in its core pawn operations and favorable operating margins in its AFF point-of-sale payment solutions segment.
FirstCash achieved a 36% increase in net income on a GAAP basis and a 32% rise on an adjusted basis, reflecting the strong demand for pawn loans. The company saw substantial gains in both the U.S. and Latin American markets, with a 13% increase in same-store pawn receivables in the U.S. and a 14% uptick in Latin America compared to the previous year. Notably, this marks the seventh consecutive quarter of double-digit growth in same-store receivables within the U.S. segment, leading to a 17% boost in earnings from this key division.
In addition to its strong financial results, FirstCash leveraged its solid cash flows to enhance its market presence and shareholder value. The company invested in 12 new pawn locations, acquired more store real estate, and proceeded with $60 million in stock repurchases. Alongside these initiatives, FirstCash continues to distribute a regular quarterly cash dividend. These strategic investments are expected to contribute to further earnings growth in 2025 and beyond.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for FirstCash Holdings Inc (FCFS, Financial) is $137.80 with a high estimate of $150.00 and a low estimate of $130.00. The average target implies an upside of 14.30% from the current price of $120.56. More detailed estimate data can be found on the FirstCash Holdings Inc (FCFS) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, FirstCash Holdings Inc's (FCFS, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for FirstCash Holdings Inc (FCFS, Financial) in one year is $124.50, suggesting a upside of 3.27% from the current price of $120.56. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the FirstCash Holdings Inc (FCFS) Summary page.
