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Earnings highlights: Toll Bros., Take-Two, Tiffany, Staples, Kraft, Corning and others

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Also, Jim Cramer discusses a decline in earnings resulting from a collapse of oil and oil services.

Upcoming quarterly reports include Korn/Ferry (NYSE: KFY), Pep Boys (NYSE: PBY), Campbell Soup (NYSE: CPB), Krispy Kreme (NYSE: KKD), and Lululemon Athletica (NASDAQ: LULU).

Visit AOL Money & Finance for more earnings coverage.

Dollar Financial (DLLR): Price cycling in bullish 'flag' consolidation

Dollar Financial Corporation (NASDAQ: DLLR) operates over 1,450 financially-oriented service stores in the U.S., Canada, Ireland and the U.K. Its customers are typically low to moderate income service sector earners, who don't use, or have access to banks. Services include check cashing, short-term consumer loans, money order/transfer products, reloadable debit cards, electronic tax filing, bill payment services and legal document processing. The company does business under the names Money Mart, Loan Mart, Insta-Cheques and Money Shop.

Dollar Financial pleased investors last week, when it reported fiscal Q4 EPS of 59 cents and revenues of $150.3 million. Analysts had been looking for 58 cents and $136.3 million. The CEO noted that fiscal 2008 brought record annual revenues and a record net income. Management also guided FY09 revenues to $595-$625 million, versus Street consensus of $586.28 million. JMP Securities subsequently reiterated its "market outperform" rating on the stock. Jefferies and Roth Capital reiterated their "buys".

Continue reading Dollar Financial (DLLR): Price cycling in bullish 'flag' consolidation

The week in preview: Earnings expectations for techs, Canadian banks

Results for the tech stocks in last week's preview were a mixed bag, some beats, some misses, some in line. By and large, expectations for tech companies reporting results this week remain high, though. Here's what analysts surveyed by Thomson Financial are anticipating in the way of earnings, as compared to the same period of the previous year.

Continue reading The week in preview: Earnings expectations for techs, Canadian banks

Analyst upgrades, downgrades and initiations

Analyst upgrades:
  • Merrill upgraded Schering-Plough (NYSE: SGP) to Buy from Neutral citing the company's better near-term pipeline outlook with two potential blockbusters to be approved over the next year. Schering-Plough's target was raised to $23 from $20.
  • Morgan Stanley lifted RadioShack (NYSE: RSH) and Texas Roadhouse (NASDAQ: TXRH) to Equal Weight from Underweight.
Analyst downgrades:
  • Jefferies downgraded shares of Hologic (NASDAQ: HOLX) to Hold from Buy as they see limited near-term catalysts after the company reported a Q3 miss and lowered top-line guidance for FY08. The firm lowered their target to $24 from $28.
  • Baird downgraded California Pizza (NASDAQ: CPKI) to Neutral from Outperform as they see limited near-term upside given the uncertain 2H08/2009 outlook. The company's target was lowered to $15 from $17.
  • JP Morgan downgraded Jones Lang LaSalle (NYSE: JLL) and CB Richard Ellis (NYSE: CBG) to Neutral from Overweight due to the continued challenging economic environment.
Analyst initiations:
  • BC Capital initiated Dollar Financial(NYSE: DLLR) with an Outperform rating and $24 target. The firm likes Dollar's geographically diversified business and valuation.

Dollar Financial (DLLR): Serving the 'underbanked'

Serving the "underbanked" segment of society has become big business and the leading firms in the group are in expansion mode. One of the biggest such companies runs the largest network of outlets in Canada and the U.K. and the second largest in the U.S.

Dollar Financial Corporation (NASDAQ: DLLR) operates nearly 1,300 financially-oriented service stores. Its customers are typically low to moderate income service sector earners, who don't use, or have access to banks. Services include check cashing, short-term consumer loans, money order/transfer products, reloadable debit cards, electronic tax filing, and bill payment services. Legal document processing is available in over 100 outlets. The company launched an Internet-based payday loan product in California last month and now intends to expand the offering to additional states.

Dollar Financial pleased investors last week, when it reported fiscal Q4 EPS of 48 cents and revenues of $109.1 million. Analysts had been looking for 47 cents and $107.2 million. In discussing the better-than-expected numbers, the CEO particularly noted the positive effects of the firm's expansion into new areas of the U.S. and also commented on solid revenue increases in Canada and the U.K. Further, management offered in-line guidance for FY08 results. Roth Capital subsequently reiterated its "buy" recommendation on the stock and boosted its price target to $36.

Continue reading Dollar Financial (DLLR): Serving the 'underbanked'

Dollar Financial (DLLR) on acquisition spree

Dollar Financial Corporation (NASDAQ: DLLR) provides check cashing services, money transfer and personal loans to those the company describes as "under-banked consumers." (Is that code for illegal aliens who do not have the paperwork necessary to open a checking account and need to send money back home?) Whatever its customer base, Dollar Financial posted record revenue in 4Q 2007. These numbers would be much more impressive if at least some of the increase in revenue came due to organic growth. All of Dollar Financial's growth seems to come from acquisitions, which the company finances through debt spending. But there is a limit to how big a debt load the company can take on and just how large a loan loss percentage it can withstand. Currently the consolidated loan loss stands at 21%.

Dollar Financial operates in Canada, United Kingdom and the United States. International revenues increased 39%, which helped to offset an 8% drop in US operations. Total revenues in 4Q were $109 million, and FY 2007 revenues were $400 million. Diluted EPS for 4Q were $0.42, more than 4X EPS of $0.10 in 4Q 2006. Dollar Financial acquired 115 locations during FY 2007 and opened 52 new stores. The company is presently completing the acquisition of 45 locations in the Midwest and Hawaii. In addition to more locations, Dollar Financial is also offering new products to its customers, including the test launch of an Internet payday loan in California. If the loan loss rate is low enough in California, CEO Jeff Weiss stated the company will expand the geographic market for this product.

That's the positive spin on Dollar Financial and its business model. The negative side is that companies like Dollar Financial have recently garnered lots of negative publicity for the outrageously high fees "under-banked consumers" must pay to cash checks and borrow against their next paycheck. Recently, the US Congress investigated companies offering exorbitant interest-rate payday loans to members of the US military. Provincial governments in Canada have opened similar investigations and are moving to cap the rates and fees companies may charge for payday loans.

Symbol Lookup
IndexesChangePrice
DJIA+31.5210,465.23
NASDAQ+8.892,178.07
S&P 500+5.161,110.81

Last updated: November 25, 2009: 03:00 PM

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