* Q2 EPS $0.94 vs est $0.97
* Q2 rev up 19 pct
* Q2 expenses up 12 pct
* Sees Q3 EPS $0.95-$1.05 vs est $1.25
* Shares fall as much as 20 pct
By Eileen Soreng
July 26 Cash America International Inc,
which canceled a $500 million initial public offering of its
online lending arm on Wednesday, warned it faces a disappointing
full year, sending its shares sliding 20 percent.
The pawn and payday lender blamed the volatile markets for
pulling the IPO of its Enova International unit and said pawn
lending faced weak demand in the second quarter.
"Management expects growth in its pawn lending business but
is more reserved about expectations for the remainder of 2012,"
the company said in a statement.
Pawn lending accounts for roughly 20 percent of the
company's revenue. It operates pawn shops and payday chains in
the United States and Mexico through Cash America Pawn,
SuperPawn and Cashland stores.
The company projected net income between 95 cents and $1.05
per share for the quarter, and $4.35 and $4.60 per share for the
Analysts had expected earnings of $1.25 per share for the
quarter and $4.97 for the year, according to Thomson Reuters
The company also expects to book a cost of $3 million, or 6
cents per share, in the third quarter related to the IPO
withdrawal, it said in a statement.
Cash America was planning to list Enova to focus on growing
its store-front pawn operations in the United States and Latin
Enova - which has operations in the United States, Canada,
UK, and Australia - reported net income of $37 million on
revenue of $480.3 million for the year.
Cash America's net income rose to $29.8 million, or 94 cents
per share, for the second quarter, from $27 million, or 84 cents
per share, a year earlier.
Revenue rose about 19 percent to $411.6 million.
Analysts on average expected the company to earn 97 cents
per share, on revenue of $407.2 million.
Expenses rose 12 percent to $179.4 million.
Shares of the company were down 17 percent at $37.17 on
Thursday afternoon. They had touched a low of $36.01 earlier in
the session making them one of the top percentage losers on the
New York Stock Exchange.
WORLD ACCEPTANCE BEATS
While Cash America and Ezcorp are struggling with
loan demand, peer World Acceptance reported
better-than-expected first-quarter earnings on higher loans.
It reported net income of $22.6 million, or $1.63 per share,
while analysts' expected it to earn $1.50 per share.
Rival Ezcorp missed Wall Street estimates earlier this week
and said full-year earnings would be at the lower end of its
previously announced range.
World Acceptance's shares touched a 52-week high of $76.52
in morning trade on the Nasdaq.