NASDAQ$FCFS
FirstCash Holdings Inc · Q3 2022 earnings
Q3 2022 earnings · · Investor relations
Briefing
FirstCash's Q3 2022 earnings were reported with revenues growing 68% and net income increasing 78% year-over-year.
FirstCash reported outstanding third-quarter results, driven by strong pawn growth metrics in both the U.S. and Latin America. Consolidated revenues totaled $672 million, a 68% increase over the prior-year quarter, and net income increased 78% over the prior-year quarter. The company's board authorized a new $100 million share repurchase plan and declared a $0.33 quarterly cash dividend.
- Diluted earnings per share increased 54% over the prior-year quarter on a GAAP basis.
- Net income for the third quarter increased 78% over the prior-year quarter on a GAAP basis.
- Consolidated revenues totaled $672 million in the third quarter, representing a 68% increase over the prior-year quarter.
- Combined pre-tax operating income from the Company’s two pawn segments increased 27% in the third quarter of 2022 compared to the prior-year quarter and represented 84% of consolidated segment profit.
Headline financials
Revenue & EPS history
FirstCash · Revenue · Quarterly
$672M
Revenue by segment
FirstCash · $672M total across 5 segments · Q3 2022
- Retail Merchandise Sales$301M+12.0%44.8%
- Leased Merchandise Income$158M—23.5%
- Pawn Loan Fees$146M+20.1%21.7%
- Interest and Fees on Finance Receivables$48.8M—7.3%
- Wholesale Scrap Jewelry Sales$18.6M+93.9%2.8%
Forward guidance
The Company outlook for 2022 remains very positive as it continues to expect significant year-over-year revenue and earnings growth based on the first nine-months results and current trends.
Tailwinds
- Pawn operations are expected to remain the primary earnings driver for 2022.
- Inflationary economic environments have historically driven increased customer demand for both pawn loans and value-priced merchandise offered in pawn stores.
- Cash fundings to customers in both the U.S. and Latin America remain exceptionally robust.
- October retail sales results continue to be strong as well.
- Pawn merchandise inventories remain well-positioned, having normalized to pre-COVID levels with very limited amounts of aged inventory, which continue to drive retail margins at or above historical levels.
Headwinds
- Despite macroeconomic retail headwinds, the Company expects AFF to see continued growth in gross transaction volumes, primarily from increased merchant door counts.
- Revenues are anticipated to grow as well, given the 8% year-over-year increase in beginning Q4 2022 gross leased merchandise and finance receivable balances.
- AFF’s estimated lease and loan loss provisioning for the remainder of the year is expected to reflect higher, pre-pandemic loss rates with additional provisioning overlay for certain portfolios given the current macroeconomic environment.
- AFF utilizes a lease and loan reserve methodology that reflects expected lifetime losses on its portfolios.
- The consolidated effective income tax rate for the nine months ended September 30, 2022 was 21.9%, which included a $4.3 million permanent tax benefit related to the gain on revaluation of contingent acquisition consideration.
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 Q3 2022
+0.1%
Avg return
Earnings day
+1.7%
Avg return
5 days after
+2.3%
Avg return
30 days after
52%
34 / 65 earnings
Positive
+14.8%
Q1 2022
Best reaction
-13.0%
Q4 2014
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +3.4% | +4.1% | +10.6% | |
| Q4 2025 | +3.3% | +5.7% | +10.7% | |
| Q3 2025 | +7.2% | +8.0% | +7.0% | |
| Q1 2025 | +9.1% | +10.6% | +5.6% | |
| Q4 2024 | +0.4% | +0.6% | +0.3% | |
| Q3 2024 | -4.2% | -3.9% | -5.2% | |
| Q2 2024 | +1.6% | +1.7% | +7.7% | |
| Q1 2024 | -12.4% | -14.4% | -10.1% | |
| Q4 2023 | +1.2% | +0.9% | +0.2% | |
| Q3 2023 | +5.6% | +7.4% | +10.6% | |
| Q2 2023 | -2.0% | +0.3% | -8.2% | |
| Q1 2023 | +8.1% | +6.9% | +1.8% | |
| Q4 2022 | -2.4% | -1.8% | -1.9% | |
| Q3 2022 | +9.9% | +11.9% | +7.8% | |
| Q2 2022 | +12.2% | +9.7% | +19.2% | |
| Q1 2022 | +14.8% | +9.1% | +6.1% | |
| Q4 2021 | +7.6% | +4.4% | -8.5% | |
| Q3 2021 | +1.4% | +4.5% | -23.7% | |
| Q2 2021 | +2.9% | +4.1% | +12.3% | |
| Q1 2021 | -0.3% | +5.6% | +17.6% | |
| Q4 2020 | +5.7% | +3.8% | +13.7% | |
| Q3 2020 | -4.8% | -9.7% | +8.4% | |
| Q2 2020 | +2.1% | -6.5% | -5.2% | |
| Q1 2020 | -5.9% | -0.6% | -1.0% | |
| Q4 2019 | +3.0% | +1.9% | -9.4% | |
| Q3 2019 | -10.3% | -8.9% | -17.1% | |
| Q2 2019 | -2.9% | -1.4% | -7.0% | |
| Q1 2019 | +8.2% | +8.3% | +4.9% | |
| Q4 2018 | -4.5% | -5.1% | +4.8% | |
| Q3 2018 | +1.8% | +5.7% | +13.9% | |
| Q2 2018 | -12.2% | -13.4% | -12.8% | |
| Q1 2018 | +4.6% | +8.7% | +11.6% | |
| Q4 2017 | +1.2% | +0.1% | +2.1% | |
| Q3 2017 | +6.7% | +5.7% | +10.4% | |
| Q2 2017 | +0.9% | +0.5% | +1.6% | |
| Q1 2017 | +1.0% | +3.1% | +4.5% | |
| Q4 2016 | +1.9% | +1.8% | +3.4% | |
| Q3 2016 | -0.6% | -0.8% | +0.8% | |
| Q2 2016 | +0.1% | -1.2% | +1.1% | |
| Q1 2016 | -6.1% | — | — | |
| Q4 2015 | -5.7% | — | — | |
| Q3 2015 | -10.2% | — | — | |
| Q2 2015 | -12.3% | — | — | |
| Q1 2015 | +0.3% | — | — | |
| Q4 2014 | -13.0% | — | — | |
| Q3 2014 | -1.4% | — | — | |
| Q2 2014 | +0.6% | — | — | |
| Q1 2014 | -2.8% | — | — | |
| Q4 2013 | -11.2% | — | — | |
| Q3 2013 | +4.6% | — | — | |
| Q2 2013 | +0.6% | — | — | |
| Q1 2013 | -0.3% | — | — | |
| Q4 2012 | +3.3% | — | — | |
| Q3 2012 | -3.0% | — | — | |
| Q2 2012 | +1.6% | — | — | |
| Q1 2011 | -0.3% | — | — | |
| Q1 2012 | +1.3% | — | — | |
| Q4 2009 | -0.4% | — | — | |
| Q4 2011 | -0.4% | — | — | |
| Q3 2010 | -1.4% | — | — | |
| Q3 2011 | -1.4% | — | — | |
| Q4 2010 | -0.1% | — | — | |
| Q2 2011 | -0.1% | — | — | |
| Q2 2010 | -0.1% | — | — | |
| Q1 2010 | -1.0% | — | — |
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