NASDAQ$FCFS
FirstCash Holdings Inc · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
FirstCash reported record Q4 and full-year earnings, added 45 pawn stores through acquisitions and openings, repurchased 2.2 million shares in 2022, and declared a quarterly cash dividend.
FirstCash announced record operating results for the fourth quarter and full-year ended December 31, 2022. Record fourth quarter revenue and earnings results capped off an outstanding 2022. Pawn receivables ended the year at record levels and continued to see strong revenue and earnings growth from the core pawn segments in both the U.S. and Latin America.
- Net income for the fourth quarter increased 173% over the prior-year quarter on a GAAP basis.
- Diluted earnings per share for the fourth quarter of 2022 increased 146% over the prior-year quarter on a GAAP basis.
- Consolidated revenues in the fourth quarter increased 49% over the prior-year quarter and 50% on an adjusted basis.
- The retail POS payment solutions segment (AFF) contributed fourth quarter GAAP segment pre-tax income of $22 million.
Headline financials
Revenue & EPS history
FirstCash · Revenue · Quarterly
$757M
Revenue by segment
FirstCash · $749M total across 5 segments · Q4 2022
- Retail Merchandise Sales$359M+9.5%47.9%
- Leased Merchandise Income$166M+632.5%22.2%
- Pawn Loan Fees$150M+16.1%20.0%
- Interest and Fees on Finance Receivables$46.2M+412.4%6.2%
- Wholesale Scrap Jewelry Sales$27.7M+111.3%3.7%
Forward guidance
The Company’s outlook for 2023 is highly positive, with expected year-over-year growth in revenue and earnings in all segments driven by the continued growth in earning asset balances coupled with recent store additions as we begin the year.
Tailwinds
- Pawn operations are expected to remain the primary earnings driver in 2023.
- Inflationary economic environments have historically driven increased customer demand for both pawn loans and value-priced merchandise offered in pawn stores.
- Beginning of the year pawn receivables are up 10% in the U.S., which includes balances from recently acquired stores, and Latin American balances are up 12% on a currency adjusted basis.
- Consolidated retail sales are expected to grow as well, reflecting mid-single digit growth in total inventories with margins for 2023 expected to remain above 40% in the U.S. with mid-thirty percent margins in Latin America.
- The Company expects approximately 60 new store additions in Latin America in 2023 through de novo openings and another four stores are expected to be opened in the Las Vegas market in the U.S. in 2023.
Headwinds
- Macroeconomic retail headwinds continue to impact consumer confidence in general and more specifically for large ticket transactions at many of AFF’s retail merchant partners.
- Assuming that the current macro environment does not change significantly, management continues to expect year-over-year growth in gross transaction volumes of 8% to 12% in 2023, primarily from increased merchant door counts, which should result in similar expected growth in revenues for 2023 as well.
- LTO and finance revenues are typically lower in the first half of the year due to the impact of early buyout activity associated with first quarter tax refunds which reduces merchandise on lease and finance receivable balances.
- The Company expects AFF’s estimated lease and loan loss provisioning rates for 2023 to remain consistent with 2022, reflecting continued additional provisioning above historical losses for most portfolios given ongoing inflationary stress on consumers.
- While the Company expects some level of net de-leveraging by the end of 2023, net interest expense is expected to increase in 2023 compared to 2022 by approximately $10 million to $14 million due to higher floating interest rates on the borrowings under the revolving credit facilities.
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 Q4 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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