World Acceptance (NASDAQ:WRLD) Announces Quarterly Earnings Results

World Acceptance (NASDAQ:WRLD) posted its earnings results on Friday. The credit services provider reported $2.12 earnings per share for the quarter, beating the consensus estimate of $0.58 by $1.54, FiscalAI reports. World Acceptance had a return on equity of 9.36% and a net margin of 5.98%.

Here are the key takeaways from World Acceptance’s conference call:

• World Acceptance reported adjusted EPS of $2.12 for the first quarter, supported by a 4.8% increase in revenue and a 13.4% decline in provision expense.
• The company said credit quality improved, with annualized net charge-offs falling to 18.2% from 19.2% a year ago and front-end delinquency improving to 18.1% from 19.2%.
• Management attributed revenue growth to continued loan portfolio expansion and a 91-basis-point increase in interest and insurance yields, indicating stronger portfolio returns.
• Executives said they tightened underwriting about six months ago and began easing slightly about a month ago, while still describing the credit box as conservative.
• Management said demand remains robust overall, even though bookable applications declined somewhat after the tighter credit standards were implemented.

World Acceptance Stock Performance

Shares of WRLD stock traded up $28.34 during trading hours on Friday, reaching $209.42. 116,706 shares of the company’s stock were exchanged, compared to its average volume of 134,366. World Acceptance has a fifty-two week low of $110.00 and a fifty-two week high of $227.68. The company has a quick ratio of 22.99, a current ratio of 22.99 and a debt-to-equity ratio of 1.26. The stock has a market capitalization of $971.71 million, a P/E ratio of 28.60 and a beta of 1.13. The business has a fifty day moving average price of $182.26 and a 200-day moving average price of $153.63.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on WRLD. Wall Street Zen downgraded World Acceptance from a “buy” rating to a “hold” rating in a research note on Sunday, June 28th. Weiss Ratings reissued a “hold (c)” rating on shares of World Acceptance in a research note on Wednesday, June 24th. Two investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company currently has a consensus rating of “Hold”.

Insider Activity at World Acceptance

In related news, SVP Alice Lindsay Caulder sold 609 shares of the business’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $181.00, for a total transaction of $110,229.00. Following the transaction, the senior vice president owned 14,682 shares of the company’s stock, valued at approximately $2,657,442. The trade was a 3.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Benjamin E. Robinson III sold 2,031 shares of the company’s stock in a transaction on Monday, June 29th. The shares were sold at an average price of $222.77, for a total transaction of $452,445.87. Following the transaction, the director owned 4,836 shares of the company’s stock, valued at approximately $1,077,315.72. The trade was a 29.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 5,576 shares of company stock worth $1,149,890. Insiders own 41.60% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Geode Capital Management LLC lifted its stake in shares of World Acceptance by 2.9% in the fourth quarter. Geode Capital Management LLC now owns 87,588 shares of the credit services provider’s stock valued at $12,299,000 after buying an additional 2,469 shares during the period. Smith Thomas W acquired a new position in World Acceptance in the 4th quarter valued at approximately $10,894,000. Charles Schwab Investment Management Inc. raised its holdings in World Acceptance by 15.6% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 76,188 shares of the credit services provider’s stock valued at $10,696,000 after acquiring an additional 10,308 shares in the last quarter. Millennium Management LLC raised its holdings in World Acceptance by 680.5% in the 4th quarter. Millennium Management LLC now owns 67,649 shares of the credit services provider’s stock valued at $9,497,000 after acquiring an additional 58,982 shares in the last quarter. Finally, AQR Capital Management LLC lifted its position in shares of World Acceptance by 5.2% in the 4th quarter. AQR Capital Management LLC now owns 64,358 shares of the credit services provider’s stock worth $9,035,000 after acquiring an additional 3,195 shares during the period. Institutional investors and hedge funds own 83.63% of the company’s stock.

About World Acceptance

World Acceptance Corporation (NASDAQ: WRLD) is a consumer finance company headquartered in Greenville, South Carolina. Founded in 1972, the company provides credit solutions to underserved customers who may have limited access to traditional banking services. Over the decades, World Acceptance has built a reputation for tailored lending that emphasizes responsible underwriting and personalized customer service.

The company’s core product offerings include short-term installment loans designed to meet the immediate financial needs of its clients.