Yahoo Finance FirstCash Holdings, Inc Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Shareholders of FirstCash Holdings, Inc (NASDAQ:FCFS) will be pleased this week, given that the stock price is up 14% to US$95.15 following its latest quarterly results. It looks like a credible result overall - although revenues of US$672m were what the analysts expected, FirstCash Holdings surprised by delivering a (statutory) profit of US$1.26 per share, an impressive 26% above what was forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on FirstCash Holdings after the latest results.
Check out our latest analysis for FirstCash Holdings
Taking into account the latest results, the most recent consensus for FirstCash Holdings from six analysts is for revenues of US$2.97b in 2023 which, if met, would be a notable 20% increase on its sales over the past 12 months. Statutory earnings per share are predicted to jump 35% to US$5.86. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.95b and earnings per share (EPS) of US$5.69 in 2023. So the consensus seems to have become somewhat more optimistic on FirstCash Holdings' earnings potential following these results.
There's been no major changes to the consensus price target of US$93.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic FirstCash Holdings analyst has a price target of US$105 per share, while the most pessimistic values it at US$80.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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. The analysts are definitely expecting FirstCash Holdings' growth to accelerate, with the forecast 16% annualised growth to the end of 2023 ranking favourably alongside historical growth of 2.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect FirstCash Holdings to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards FirstCash Holdings following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$93.00, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for FirstCash Holdings going out to 2024, and you can see them free on our platform here..
Plus, you should also learn about the 3 warning signs we've spotted with FirstCash Holdings .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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