Tag - Financial

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.

Sterling Financial Corp. (Nasdaq: STSA) said it is tempering its fourth-quarter earnings outlook on account of charges for credit costs and prepayment for high fixed rate trust preferred securities.

For the fourth quarter ending Dec. 31, the Spokane, Wash.-based small cap said it now expects earnings in the range of $0.31 to $0.34 per diluted share. The consensus of five analysts polled by Thomson Financial was for earnings of $0.53 per share. Sterling earned $0.57 in the fourth quarter last year.

For the year ended Dec. 31, 2007, Sterling said it now expects earnings to be in the range of $1.84 to $1.87 per diluted share. Four analysts polled by Thomson Financial were on average projecting earnings of $2.09 per share for the full year. Last year the bank earned $2.02 per share.

Sterling said it is continuing to closely monitor its loan portfolio and focus on residential construction lending. The company said it is taking a “measured approach” to provide adequate loan loss provisions, and as a result, Sterling said it expects to record an approximate $13 million provision for credit costs for the fourth quarter.

Shares of Dolan Media Company (NYSE: DM) are jumping in pre-market trading after theStreet.com's Jim Cramer said late Monday that the provider of business information and professional services to the legal, financial and real estate sectors is “one of the most interesting plays around as it is a play directly on mortgage defaults.”

“What's good about Dolan Media is that it has not attracted much attention,” Cramer said.

Cramer said the Minneapolis, Minn.-based firm works in two segments, publishing business journals and acting as a mortgage default processor. Acting as a mortgage default processor is a part of Dolan Media’s professional services division, which helps law firms process residential mortgage defaults, according to Cramer. 

The company said on Sept. 6 that it will ratchet up its professional services division. Cramer said he believes that division will comprise a larger portion of Dolan Media’s business.

Shares of Dolan Media (DM) gained $1.75, or 7.23%, to $25.95 in pre-market trading.