Top Financial Stocks
Financial stocks were slightly lower this afternoon, with the
NYSE Financial Sector Index falling 0.3% while financial companies
in the S&P 500 Index also receding about 0.3%.
In company news, First Cash Financial Services Inc. (
) rallied to an all-time high on Thursday after the pawn-shop chain
today announced a $994 million buyout of rival Cash America (
Under the terms of the agreement Cash America investors will
receive a fixed 0.84 of a First Cash share for each Cash America
share they currently own. After the deal closes, First Cash
shareholders will own about 58% of the combined companies with Cash
America shareholders receiving a 42% stake.
Separately, both companies today also reported financial results
for their respective fiscal Q1. Cash American earned $0.42 per
share, beating the Capital IQ consensus by $0.04 per share while
revenue grew 2% over year-ago levels to $277.21 million, also
topping the $261.89 million consensus.
Excluding one-time items, First Cash recorded a $0.48 per share
Q1 profit, topping the Street view by $0.04 per share. Consolidated
core revenue rose 18% to $183 million, narrowly exceeding the
$181.51 consensus. Both firms also raised their FY16 outlooks.
FCFS shares were up more than 2% to $49.85 each, easing somewhat
from a record high of $53.67 a share. CSH shares also increased
about 2.5% in recent trade to $41.76 apiece, also reaching a
best-ever $44.76 a share earlier today.
In other sector news,
(+) MN, (+5.9%) Adjusted Q1 economic net income of $0.18 per
share beats Capital IQ consensus by $0.01 per share. Revenue
declines 28.7% from last year to $64.5 mln, lagging the $66.25 mln
(-) OCN, (-18.3%) Reports Q1 net loss of $0.90 per share,
reversing a $0.27 per share profit last and considerably wider than
the $0.39 per share loss analysts were projecting. Revenue drops
35% to $330.8 mln, missing the $346.3 mln consensus.