UPDATE 2-Cash America Q2 profit beats Street; cuts '09 EPS view

* Q2 EPS $0.54 vs est $0.52; rev $252.4 mln

* Cuts 2009 profit view

* Sees Q3 EPS of $0.70 to $0.75 (Adds conference call details, analyst's comments, updates share movement)

By Abhinav Sharma

BANGALORE, July 23 (Reuters) - Payday lender Cash America International Inc (CSH.N) posted a better-than-expected quarterly profit, helped by lower losses on cash advance loans and rising pawn loan demand, but cut its 2009 earnings view.

"It was a better-than-expected quarter, with guidance more back in line now with consensus expectations, and the stock looks ridiculously undervalued," Sterne Agee analyst Henry Coffey said.

The company expects its third-quarter profit to be higher than year-ago levels on continued strength in demand for its lending products.

"The recovery of pawn loan balances during the second quarter contributed to the company exceeding our initial expectations," Chief Executive Daniel Feehan said.

Analyst Coffey said the company is earning 2 cents to 3 cents a share each quarter from the Mexican pawn loan business and expects it to almost triple next year.

He said the company will benefit both in terms of stimulating likely growth and gain in market share over the more traditional pawn loan providers in Mexico.

Cash America expects to earn 70 cents to 75 cents a share in the third quarter.

The company lowered its 2009 profit view to a range of $3.00 to $3.15 a share. It earlier expected $3.10 to $3.30.

The company expects to take a charge of about 2 cents a share each in the next two quarters, related to interest expense for its convertible notes offering in May.

The analyst sees fiscal 2009 earnings per share of $3.0 to $3.10.

For the second quarter, Cash America earned $16.6 million, or 54 cents a share, compared with $20.1 million or 67 cents a year ago. Revenue rose about 2 percent to $252.4 million.

Analysts on average expected Cash America to earn 52 cents a share, before special items, according to Reuters Estimates.

Shares of the Fort Worth, Texas-based company were down 8 cents at $26.16 in late afternoon trade Thursday on the New York Stock Exchange. (Additional reporting by Santosh Nadgir in Bangalore; Editing by Himani Sarkar and Unnikrishnan Nair)