Company expects to carefully increase new customer lending in coming quarters
Overview
U.S. personal lender's fiscal Q1 revenue rose 4.8% yr/yr
Posts adjusted EPS for fiscal Q1 of $2.12
Company repurchased 15,858 shares for about $2.2 mln during the quarter
Analyst coverage
The one available analyst rating on the shares is "hold"
The average consensus recommendation for the consumer lending peer group is "buy"
Wall Street's median 12-month price target for World Acceptance Corp is $141.00, about 22.1% below its July 23 closing price of $181.08
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 10 three months ago
Result drivers and key details
EXISTING CUSTOMER BORROWING - Growth in loan volume was driven by increased borrowing from existing and refinance customers, while new customer loan volume fell sharply due to tightened underwriting
CREDIT QUALITY IMPROVEMENT - Lower delinquency and net charge-off rates, along with a reduced provision for credit losses, contributed to results
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