In This Article:
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Net Income: Reached $35.1 million for Q4 FY 2024, up from $24.6 million in Q4 FY 2023, surpassing the estimate of $25.08 million.
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Earnings Per Share: Increased to $6.09 in Q4 FY 2024 from $4.20 in the same quarter the previous year, exceeding the estimated $4.35.
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Revenue: Totaled $159.3 million in Q4 FY 2024, a slight decrease from $160.8 million in Q4 FY 2023, but still surpassed the estimated $149.35 million.
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Provision for Credit Losses: Decreased to $29.3 million in Q4 FY 2024 from $45.4 million in Q4 FY 2023, reflecting improved credit performance.
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Net Charge-offs: Decreased to $47.4 million in Q4 FY 2024 from $64.4 million in the same quarter of the previous year, indicating better loan recovery.
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Customer Base: Saw a decrease in unique borrowers by 6.2% year-over-year as of Q4 FY 2024, showing a contraction in the customer base.
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Same-Store Gross Loans: Decreased by 6.7% over the twelve-month period ending March 31, 2024, compared to a decrease of 2.3% in the previous year, indicating reduced activity in established branches.
On May 2, 2024, World Acceptance Corp (NASDAQ:WRLD) disclosed its financial outcomes for the fourth quarter of fiscal 2024 and the full year in its 8-K filing. The company, known for its consumer finance business offering loans and tax preparation services, reported a notable increase in quarterly net income, surpassing analyst estimates, but saw a slight decline in revenue compared to the previous year.
Fiscal Quarter Financial Highlights
For the quarter ended March 31, 2024, World Acceptance Corp achieved a net income of $35.1 million, or $6.09 per diluted share, significantly higher than the $24.6 million, or $4.20 per share reported in the same quarter last year. This performance notably exceeded the analyst's quarterly estimate of $4.35 per share. However, total revenues for the quarter stood at $159.3 million, a decrease of 1.0% from $160.8 million in the prior year, slightly missing the estimated revenue of $149.35 million.
Annual Financial Overview
For the full fiscal year 2024, World Acceptance reported a substantial increase in annual net income to $77.3 million, or $13.19 per diluted share, up from $21.2 million, or $3.60 per diluted share in the previous year. This result significantly surpasses the annual EPS estimate of $11.49. Total annual revenue was reported at $573.2 million, down 7.0% from $616.5 million in fiscal 2023, yet slightly above the estimated $563.30 million.
Operational and Strategic Developments
The company highlighted its conservative approach to lending and focus on credit quality as key drivers of its strong financial performance. Despite a decrease in gross loans outstanding by 8.1% year-over-year to $1.28 billion, the company improved its gross yield to expected loss ratio and maintained a robust underwriting environment. Notably, the net charge-offs decreased significantly, contributing to the lower provision for credit losses which stood at $29.3 million, down from $45.4 million in the comparable quarter last year.