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It's been a pretty great week for EZCORP, Inc. (NASDAQ:EZPW) shareholders, with its shares surging 14% to US$5.19 in the week since its latest quarterly results. Revenues of US$178m reported a marginal miss, falling short of forecasts by 8.5%, but earnings were better than expected - statutory profits came in at US$0.08 per share, a nice change from the loss the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for EZCORP
Following the latest results, EZCORP's dual analysts are now forecasting revenues of US$800.3m in 2021. This would be a modest 2.8% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 99% to US$0.015. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$800.3m and losses of US$0.015 per share in 2021.
The consensus price target was unchanged at US$6.25, suggesting that the business - losses and all - is executing in line with estimates.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that EZCORP's revenue growth is expected to slow, with forecast 2.8% increase next year well below the historical 4.0%p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% per year. Factoring in the forecast slowdown in growth, it seems obvious that EZCORP is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for EZCORP going out as far as 2022, and you can see them free on our platform here.