UPDATE 2-Cash America may change Florida product offering
(Adds analyst's comments, details, stock movement)
By Sweta Singh
BANGALORE, March 31 (Reuters) - Payday lender Cash America International Inc (CSH.N) said it may change its cash lending product offering in Florida to an alternative cash advance product, following a regulatory review of a similar product of its competitor.
The regulators were reviewing Ezcorp Inc's (EZPW.O) credit services organization (CSO) product and could come out with some recommendations, Roth Capital Partners analyst Elizabeth Pierce said.
A CSO arranges for short-term cash advances to customers with an independent third-party lender. It operates as a broker and can make loans through unregistered consumer lending companies.
Pawn-loans provider Cash America operates several of its pawn shops and its Internet lending division in Florida under the CSO model, Pierce said. Cash America said though it was not a part of the administrative proceeding, the Florida regulator's suggestions could lead to a change in its product offering in the state.
However, the Fort Worth, Texas-based company said it did not expect the change in the product offering to affect its 2008 earnings-per-share outlook.
On Jan. 24, the company had reaffirmed its full-year earnings view of $2.85 to $3.05 a share. Analysts were expecting $3.02 a share, before special items, according to Reuters Estimates.
Cash America, which competes with First Cash Financial Services Inc (FCFS.O), Ezcorp and Advance America Cash Advance Centers Inc (AEA.N), did not comment on its recently raised first-quarter earnings view in its statement.
Last week, it forecast quarterly earnings of 80 cents to 82 cents a share, up from its prior view of 70 cents to 75 cents a share. Analysts were expecting 80 cents a share.
Pierce believes the company can still meet its 2008 outlook, while first-quarter outlook will remain unaffected.
Shares of the company fell 17 cents to $36.55 in morning trade on the New York Stock Exchange, while those of Ezcorp were down more than 1 percent at $12.23 on Nasdaq. (Editing by Himani Sarkar)
