First Cash Financial Services posts disappointing Q4

First Cash Financial Services, Inc. (Nasdaq: FCFS), an operator of pawn stores that provide consumer financial services in the United States and Mexico, reported disappointing fourth-quarter results after Tuesday’s close and issued 2008 earnings guidance below the consensus on Wall Street.

The missed estimates and lackluster outlook sent shares barreling lower by 21.9%, or $3.08, to a new 52-week low $11 in pre-market trading. Shares of the small cap have been trading in the range of $12.80 to $25.80 for the past 52 weeks.

For the three months ended Dec. 31, 2007, the Arlington, Texas-based company recorded earnings per share of $0.18, below the Thomson Financial mean of $0.38, as polled by five analysts. The current quarter’s results compare with $0.27 earned in the fourth quarter of 2006.

The company attributed the decline in earnings to weaker-than-expected operating results from its Auto Master division and the quicker-than-expected closing of short-term loan operations in the District of Columbia.

First Cash said it will also record, as a component of discontinued operations, a one-time charge of $0.02 per share for store closing expenses.

Fourth-quarter revenues increased 25% to $107 million, but still fell short of the consensus of four analysts surveyed by Thomson Financial of $114.46 million. The company earned $86 million in revenue in the prior-year quarter.

Same-store revenue increased 12% in the company's pawn and short-term loan stores over the fourth quarter of 2006.

Guiding forward, First Cash (FCFS) said it expects earnings for 2008 in the range of $1.17 to $1.20 per share on account of its discontinued operations in D.C. and a more cautionary outlook for its Auto Master division. The consensus of six analysts surveyed by Thomson Financial is for earnings of $1.51 per share.

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