NASDAQ$EZPW
EZCORP Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Reported record second quarter pawn loans outstanding and sales, driving strong revenue growth.
EZCORP reported a 20% increase in total revenue and a 16% increase in gross profit for the second quarter of fiscal year 2023. Pawn loans outstanding rose by 19% to $206.1 million. However, the company experienced a net loss of $6.8 million, primarily due to a share of a one-time, non-cash goodwill impairment recognized by Cash Converters International.
- Pawn loans outstanding (PLO) increased 19% to $206.1 million.
- Total revenue increased 20%, and gross profit increased 16%.
- Merchandise sales gross margin remains within our targeted range at 36%.
- Diluted loss per share of $0.12, was down from diluted earnings per share of $0.20. On an adjusted basis, diluted earnings per share was $0.23, compared to $0.22 in the prior-year quarter.
Headline financials
Revenue & EPS history
EZCORP · Revenue · Quarterly
$258M
Revenue by segment
EZCORP · $258M total across 3 segments · Q2 2023
- U.S. Pawn$189M+16.1%73.0%
- Latin America Pawn$69.9M+30.3%27.0%
- Other Investments$10-65.5%0.0%
Forward guidance
EZCORP will continue to invest in their people and technology with the goal of serving more customers, more frequently, across more locations, in an environmentally sustainable way, to ultimately drive value to its shareholders
Tailwinds
- Expanding store footprint with 13 de novo stores opened (2 in Las Vegas under Max Pawn and EZPAWN brands, 8 in Mexico, and 3 in Guatemala).
- EZ+ Rewards loyalty program continues to grow, reaching 2.9 million members globally, a 17% increase over the first quarter of 2023.
- Enhancing recruiting strategies and implementing development programs for Lead Pawnbrokers and Store Managers in Latin America.
- Launched a new SharePoint in-store communications program in the US to enhance daily program execution and performance management strategies.
- Deployed store system and network upgrades to support digital initiatives and building out e-commerce capabilities.
Headwinds
- Macro-economic environment continues to support increased core demand for our products and services.
- Aged general merchandise has increased to 2.2% of total general merchandise inventory.
- Net loss of $6.8 million, was down from Net Income of $14.9 million, primarily driven by our $25.6 million share of the one-time, non-cash goodwill impairment and discrete adjustments recognized by Cash Converters International
- General and administrative expenses increased 28%, primarily due to the reversal of incentive compensation for the departed CEO in the prior period and, to a lesser extent, increase in accrued incentive compensation.
- Merchandise sales gross margin decreased to 38% from 41%, reflecting a more normalized operating environment.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2023
+0.2%
Avg return
Earnings day
+2.6%
Avg return
5 days after
+2.6%
Avg return
30 days after
47%
31 / 66 earnings
Positive
+18.6%
Q4 2019
Best reaction
-26.9%
Q4 2013
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q2 2026 | +0.7% | +0.3% | -4.5% | |
| Q1 2026 | +4.5% | +12.7% | +15.3% | |
| Q4 2025 | +1.9% | +2.8% | +20.5% | |
| Q2 2025 | -2.3% | -4.0% | -17.7% | |
| Q1 2025 | +1.0% | +14.1% | +9.0% | |
| Q4 2024 | +2.1% | +2.5% | +3.7% | |
| Q3 2024 | +1.1% | +7.3% | +17.7% | |
| Q2 2024 | -4.0% | -6.0% | -4.5% | |
| Q1 2024 | +11.1% | +19.5% | +18.5% | |
| Q4 2023 | -2.3% | -1.5% | +2.3% | |
| Q3 2023 | +4.1% | +2.9% | -7.1% | |
| Q2 2023 | -1.5% | +3.2% | -3.1% | |
| Q1 2023 | -0.9% | +2.2% | -0.5% | |
| Q4 2022 | -4.5% | +0.7% | -14.3% | |
| Q3 2022 | +5.2% | +9.7% | +0.4% | |
| Q2 2022 | +11.0% | +6.0% | +10.5% | |
| Q1 2022 | +6.9% | +0.8% | -9.3% | |
| Q4 2021 | +11.3% | +4.0% | -7.3% | |
| Q3 2021 | +6.1% | +8.0% | +23.0% | |
| Q2 2021 | +15.3% | +13.3% | +28.9% | |
| Q1 2021 | +10.9% | +10.0% | +11.1% | |
| Q4 2020 | -3.1% | -10.0% | -8.0% | |
| Q3 2020 | +4.4% | +5.1% | -1.6% | |
| Q2 2020 | -12.0% | -12.7% | +18.8% | |
| Q1 2020 | -19.5% | -20.4% | -25.2% | |
| Q4 2019 | +18.6% | +18.2% | +27.0% | |
| Q3 2019 | -10.8% | -14.3% | -21.6% | |
| Q2 2019 | -9.3% | -14.6% | -14.9% | |
| Q1 2019 | +2.4% | +10.5% | +9.1% | |
| Q4 2018 | +8.1% | +2.9% | -8.7% | |
| Q3 2018 | -4.4% | -0.4% | -3.1% | |
| Q2 2018 | +6.6% | +9.1% | -5.1% | |
| Q1 2018 | +14.4% | +9.3% | +11.9% | |
| Q4 2017 | +12.2% | +16.3% | +25.0% | |
| Q3 2017 | +5.0% | +9.4% | +13.1% | |
| Q2 2017 | -1.7% | -0.6% | +0.0% | |
| Q1 2017 | -2.0% | -6.5% | -9.5% | |
| Q4 2016 | +0.0% | -6.8% | -9.8% | |
| Q3 2016 | -2.1% | -3.2% | +10.9% | |
| Q2 2016 | +11.7% | — | — | |
| Q1 2016 | -15.1% | — | — | |
| Q4 2015 | -2.0% | — | — | |
| Q3 2015 | +0.6% | — | — | |
| Q2 2015 | -7.4% | — | — | |
| Q1 2015 | -15.6% | — | — | |
| Q4 2014 | -0.1% | — | — | |
| Q3 2014 | +4.6% | — | — | |
| Q2 2014 | -5.5% | — | — | |
| Q1 2014 | +13.3% | — | — | |
| Q4 2013 | -26.9% | — | — | |
| Q3 2013 | +0.6% | — | — | |
| Q2 2013 | +7.5% | — | — | |
| Q1 2013 | +12.9% | — | — | |
| Q4 2012 | -12.6% | — | — | |
| Q3 2012 | -6.2% | — | — | |
| Q2 2012 | +1.2% | — | — | |
| Q1 2012 | -0.5% | — | — | |
| Q4 2011 | -3.0% | — | — | |
| Q4 2009 | -3.0% | — | — | |
| Q2 2011 | -3.0% | — | — | |
| Q3 2011 | -11.8% | — | — | |
| Q3 2010 | -11.8% | — | — | |
| Q1 2011 | -0.4% | — | — | |
| Q1 2010 | -0.4% | — | — | |
| Q2 2010 | -0.4% | — | — | |
| Q4 2010 | -0.4% | — | — |
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