UPDATE 2-Cash America Q3 profit falls 8 pct, narrows 2008 view

* Q3 profit of $0.63 per share

* Revenue up 9 percent

* Narrows 2008 view to $3.07 to $3.11 per share

* Sees lower earnings in first two quarters of 2009

* Shares fall 8 percent

Oct 23 (Reuters) - Cash America International Inc (CSH.N) posted a 8 percent drop in quarterly profit, hurt by expenses and loss of revenue due to Hurricane Ike, and narrowed its outlook for 2008, and its shares fell 8 percent.

Outlook for the remainder of 2008 will be impacted by earning asset levels based on customer demand for credit products and by customer demand for the sale of merchandise in pawn locations, the company said in a statement.

The company should be able to achieve its forecast for 2008 as more people are turning to pawn shops in the difficult credit environment, Stephens Inc analyst Dennis Telzrow said.

The company also expects to report lower earnings in the first two quarters of 2009 compared with 2008, partly due to anticipated absence of certain markets for its cash advance product.

Shares of the company fell 8 percent to $32.18 Thursday morning on the New York Stock Exchange

Cash America competes with companies like First Cash Financial Services Inc (FCFS.O), Ezcorp Inc (EZPW.O) and Advance America Cash Advance Centers Inc (AEA.N).

CAUTIOUS OUTLOOK

Cash America, which forecast fourth-quarter earnings between 91 cents and 95 cents a share, expects retail activity to be challenging in the quarter.

The Fort Worth, Texas-based company said it will incur additional expenses associated with the Ohio and Arizona election activities in the fourth quarter of 2008.

Analysts on average expected fourth-quarter earnings of 92 cents a share, according to Reuters Estimates.

For 2008, the company sees earnings between $3.07 and $3.11 a share, compared with its prior view of $3.00 to $3.20 a share.