FirstCash Holdings (FCFS) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for FirstCash Holdings despite lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - FirstCash is expected to report quarterly earnings of $1.66 per share, reflecting a year-over-year increase of +21.2% [3]. - Revenues are projected to be $824.3 million, a decrease of 0.8% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for FirstCash is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.41% [12]. Earnings Surprise Prediction - A positive Earnings ESP reading suggests a potential earnings beat, particularly when combined with a strong Zacks Rank [10]. - FirstCash currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat despite the positive Earnings ESP [12]. Historical Performance - In the last reported quarter, FirstCash exceeded expectations by delivering earnings of $2.07 per share against an expected $1.75, resulting in a surprise of +18.29% [13]. - The company has beaten consensus EPS estimates in all of the last four quarters [14]. Industry Comparison - Another player in the financial transaction services industry, Wex, is expected to report earnings of $3.69 per share, indicating a year-over-year decline of -5.6% [18]. - Wex's revenues are anticipated to be $653.38 million, down 3% from the previous year, with a higher Most Accurate Estimate leading to an Earnings ESP of +0.88% and a Zacks Rank of 2 [19].