The FirstCash Holdings, Inc. (NASDAQ:FCFS) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

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Last week, you might have seen that FirstCash Holdings, Inc. (NASDAQ:FCFS) released its quarterly result to the market. The early response was not positive, with shares down 6.4% to US$106 in the past week. FirstCash Holdings reported in line with analyst predictions, delivering revenues of US$837m and statutory earnings per share of US$1.44, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for FirstCash Holdings

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NasdaqGS:FCFS Earnings and Revenue Growth October 27th 2024

Taking into account the latest results, the consensus forecast from FirstCash Holdings' five analysts is for revenues of US$3.58b in 2025. This reflects an okay 6.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 30% to US$7.09. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.61b and earnings per share (EPS) of US$7.09 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$136, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values FirstCash Holdings at US$150 per share, while the most bearish prices it at US$119. This is a very narrow spread of estimates, implying either that FirstCash Holdings is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that FirstCash Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than FirstCash Holdings.