World Acceptance's Q2 revenue rises 3.2%, swings to profit
WRLD•World Acceptance's fiscal Q2 revenue rose 3.2% year over year to $139.21 million, while diluted EPS swung to $1.92 from a loss of $0.33. The company repurchased 3% of its shares for $25 million during the quarter.
1. Revenue and earnings
World Acceptance reported fiscal Q2 revenue of $139.21 million, up 3.2% year over year and below the $140.70 million estimate. Diluted EPS was $1.92, compared with a loss of $0.33 a year earlier.
2. Lending and credit
Borrowing by existing customers increased while borrowing by new customers declined. Tighter underwriting for new customers at the end of the prior fiscal year contributed to a 5.4% decrease in the customer base. The provision for credit losses fell $3.8 million to $46.0 million, supporting the improvement in net income.
3. Outlook and buybacks
The company expects to carefully increase new-customer lending in coming quarters. It repurchased 3% of its shares for $25 million during the quarter.
