World Acceptance Corporation down 9.80% to $93.25 after earnings failure

Thursday, October 27, 2022 – World Acceptance Corporation (WRLD) reported lower earnings and revenue today.

Analysts’ earnings per share (EPS) expectations for World Acceptance Corporation were $0.17, with the company missing those estimates with a reported EPS loss of $0.20 per share, leading to a negative surprise of 0.37. $ per share (-218%). World Acceptance Corporation’s earnings were down 110% year-over-year as the company reported EPS of $1.94 in its year-ago quarter. The negative annual growth shows that the financial services company is not performing well in the current economic conditions.

Consensus revenue estimates for the World Acceptance Corporation averaged $161.2 million, with the company falling short of those expectations with second-quarter revenue of $151.2 million. The negative revenue surprise of $9.9 million (6%) led to 10% year-over-year growth as the company reported revenue of $137.8 million in its quarter of the previous year. The lower profit growth relative to revenue indicates that World Acceptance Corporation is unable to improve its profit margin.

The stock is down 9.80% at $93.25 after the report.

The higher growth of the company’s revenue compared to profits indicates that the company has not been able to cut costs and has seen its profit margin shrink.

Wall Street analysts had an average sell rating on the stock ahead of the report.

InvestorsObserver gives the stock a bullish sentiment score at the moment based on recent trades.

Before the report InvestorsObserver gave the stock an overall rating of 40. Meanwhile, the average Wall Street analyst rated the stock as a sell.

World Acceptance Corp operates a small loan consumer finance business. The Company offers short-term, small-payment loans, medium-term, larger-payment loans, related credit insurance, and ancillary products and services to individuals. It also provides tax preparation services to its lender clients and other individuals.

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