World Acceptance (NASDAQ:WRLD) Issues Earnings Results

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

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 Trading Up 15.2%

Shares of NASDAQ:WRLD traded up $27.58 during midday trading on Friday, reaching $208.66. The company had a trading volume of 196,559 shares, compared to its average volume of 134,980. The company has a fifty day simple moving average of $182.26 and a two-hundred day simple moving average of $153.63. The firm has a market cap of $968.20 million, a price-to-earnings ratio of 27.94 and a beta of 1.13. World Acceptance has a 1-year low of $110.00 and a 1-year high of $227.68. The company has a debt-to-equity ratio of 1.26, a quick ratio of 22.99 and a current ratio of 22.99.

Insider Activity

In other news, Director Charles D. Way sold 833 shares of the stock in a transaction on Tuesday, June 30th. The stock was sold at an average price of $225.00, for a total value of $187,425.00. Following the completion of the sale, the director owned 12,729 shares in the company, valued at $2,864,025. This represents a 6.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Benjamin E. Robinson III sold 2,031 shares of the firm’s stock in a transaction on Monday, June 29th. The stock was sold at an average price of $222.77, for a total value of $452,445.87. Following the completion of the sale, the director directly owned 4,836 shares of the company’s stock, valued at approximately $1,077,315.72. This trade represents a 29.58% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 5,576 shares of company stock valued at $1,149,890 over the last ninety days. Corporate insiders own 41.60% of the company’s stock.

Institutional Trading of World Acceptance

Several institutional investors have recently made changes to their positions in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of World Acceptance by 4.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 2,044 shares of the credit services provider’s stock valued at $259,000 after acquiring an additional 78 shares in the last quarter. Empowered Funds LLC raised its stake in shares of World Acceptance by 4.1% during the 1st quarter. Empowered Funds LLC now owns 23,422 shares of the credit services provider’s stock worth $2,964,000 after purchasing an additional 925 shares in the last quarter. JPMorgan Chase & Co. grew its stake in shares of World Acceptance by 16.7% in the 2nd quarter. JPMorgan Chase & Co. now owns 28,651 shares of the credit services provider’s stock valued at $4,731,000 after buying an additional 4,092 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in World Acceptance by 23.0% in the second quarter. Arrowstreet Capital Limited Partnership now owns 26,865 shares of the credit services provider’s stock worth $4,436,000 after buying an additional 5,025 shares during the last quarter. Finally, First Trust Advisors LP raised its position in World Acceptance by 0.8% during the second quarter. First Trust Advisors LP now owns 10,600 shares of the credit services provider’s stock valued at $1,750,000 after acquiring an additional 82 shares in the last quarter. 83.63% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

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

World Acceptance Company Profile

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.