World Acceptance (NASDAQ:WRLD) Posts Earnings Results, Misses Estimates By $0.04 EPS

World Acceptance (NASDAQ:WRLD) posted its quarterly earnings results on Thursday. The credit services provider reported $7.70 EPS for the quarter, missing analysts’ consensus estimates of $7.74 by ($0.04), Zacks reports. World Acceptance had a return on equity of 10.80% and a net margin of 7.46%.

Here are the key takeaways from World Acceptance’s conference call:

• EPS of $7.70 in Q4 (includes an after-tax charge of ~$0.25 related to a senior executive retirement), signaling strong reported profitability for the quarter.
• Total revenue rose 7.4% driven by higher loans outstanding and yields, with interest, fee and insurance income up 5.4% and tax-preparation returns prepared up 13% this season.
• Loans outstanding increased 4.4% while delinquency improved in both rate and dollars; management expects this to produce higher revenue and lower charge-offs and plans to rely less on new customers to boost credit quality.
• Field headcount was reduced ~5% after a prior build-up, with personnel expense guidance of $47M–$49M for the first three quarters (slightly higher in Q4), indicating cost control but mixed quarterly cadence.
• The company repurchased an additional $37.8 million of shares in the quarter, bringing total repurchases to the equivalent of 16.5% of outstanding shares at the start of the fiscal year.

World Acceptance Price Performance

NASDAQ WRLD traded down $6.09 during trading hours on Thursday, reaching $147.16. The company’s stock had a trading volume of 292,326 shares, compared to its average volume of 145,262. The firm’s 50-day moving average price is $139.86 and its 200-day moving average price is $141.25. The company has a quick ratio of 25.01, a current ratio of 25.01 and a debt-to-equity ratio of 1.64. World Acceptance has a 1 year low of $110.00 and a 1 year high of $185.48. The company has a market capitalization of $726.97 million, a price-to-earnings ratio of 18.84 and a beta of 1.17.

Insider Buying and Selling

In related news, insider John L. Calmes, Jr. sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, March 10th. The stock was sold at an average price of $141.88, for a total value of $141,880.00. Following the transaction, the insider directly owned 50,334 shares of the company’s stock, valued at approximately $7,141,387.92. The trade was a 1.95% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 41.60% of the company’s stock.

Institutional Trading of World Acceptance

A number of large investors have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in World Acceptance by 4.0% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,044 shares of the credit services provider’s stock worth $259,000 after acquiring an additional 78 shares during the last quarter. First Trust Advisors LP increased its stake in World Acceptance by 0.8% in the 2nd quarter. First Trust Advisors LP now owns 10,600 shares of the credit services provider’s stock worth $1,750,000 after acquiring an additional 82 shares during the last quarter. Franklin Resources Inc. increased its stake in World Acceptance by 4.6% in the 3rd quarter. Franklin Resources Inc. now owns 2,637 shares of the credit services provider’s stock worth $446,000 after acquiring an additional 117 shares during the last quarter. iSAM Funds UK Ltd bought a new stake in World Acceptance in the 3rd quarter worth approximately $30,000. Finally, Price T Rowe Associates Inc. MD increased its position in shares of World Acceptance by 5.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 3,826 shares of the credit services provider’s stock valued at $538,000 after purchasing an additional 213 shares during the last quarter. Institutional investors own 83.63% of the company’s stock.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reissued a “hold (c)” rating on shares of World Acceptance in a report on Friday, March 27th. Two equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the company has an average rating of “Hold”.

World Acceptance Company Profile

World Acceptance Corporation (NASDAQ: WRLD) is a consumer finance company headquartered in Greenville, South Carolina. Founded in 1972, the company provides credit solutions to underserved customers who may have limited access to traditional banking services. Over the decades, World Acceptance has built a reputation for tailored lending that emphasizes responsible underwriting and personalized customer service.

The company’s core product offerings include short-term installment loans designed to meet the immediate financial needs of its clients.