World Acceptance (NASDAQ:WRLD) Issues Earnings Results

World Acceptance (NASDAQ:WRLD) announced its 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 net margin of 7.46% and a return on equity of 10.80%. The business had revenue of $177.57 million for the quarter, compared to analysts’ expectations of $168.40 million.

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

WRLD stock traded up $4.21 during trading on Friday, hitting $151.37. 44,755 shares of the company’s stock traded hands, compared to its average volume of 131,641. World Acceptance has a 52 week low of $110.00 and a 52 week high of $185.48. The company has a debt-to-equity ratio of 1.64, a quick ratio of 25.01 and a current ratio of 25.01. The business has a fifty day simple moving average of $139.86 and a 200 day simple moving average of $141.25. The stock has a market capitalization of $747.78 million, a price-to-earnings ratio of 19.29 and a beta of 1.17.

Wall Street Analysts Forecast Growth

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

Insider Buying and Selling

In other World Acceptance news, insider John L. Calmes, Jr. sold 1,000 shares of the stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $141.88, for a total transaction of $141,880.00. Following the completion of the transaction, the insider owned 50,334 shares in the company, valued at $7,141,387.92. This trade represents a 1.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 41.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On World Acceptance

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Invesco Ltd. raised its stake in shares of World Acceptance by 11.6% in the fourth quarter. Invesco Ltd. now owns 33,047 shares of the credit services provider’s stock valued at $4,639,000 after acquiring an additional 3,445 shares during the period. Empowered Funds LLC raised its stake in shares of World Acceptance by 7.8% in the fourth quarter. Empowered Funds LLC now owns 27,022 shares of the credit services provider’s stock valued at $3,794,000 after acquiring an additional 1,952 shares during the period. Smith Thomas W purchased a new stake in shares of World Acceptance in the fourth quarter valued at $10,894,000. Susquehanna Fundamental Investments LLC purchased a new stake in shares of World Acceptance in the fourth quarter valued at $961,000. Finally, Millennium Management LLC lifted its holdings in World Acceptance by 680.5% during the 4th quarter. Millennium Management LLC now owns 67,649 shares of the credit services provider’s stock valued at $9,497,000 after buying an additional 58,982 shares in the last quarter. Hedge funds and other institutional investors own 83.63% of the company’s stock.

About World Acceptance

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.