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Financial Sector Update for 04/28/2016: FCFS,CSH,UIHC,OCN


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Top Financial Stocks

JPM +0.27%

BAC +0.10%

WFC -0.24%

C +0.04%

USB -0.23%

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. ( FCFS ) rallied to an all-time high on Thursday after the pawn-shop chain today announced a $994 million buyout of rival Cash America ( CSH )

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 consensus

(-) 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Banking and loans
Referenced Symbols: FCFS , UIHC , OCN



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