FirstCash Holdings, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

It's been a good week for FirstCash Holdings, Inc. (NASDAQ:FCFS) shareholders, because the company has just released its latest first-quarter results, and the shares gained 8.7% to US$132. Revenues were US$836m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$1.87, an impressive 23% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

We've discovered 2 warning signs about FirstCash Holdings. View them for free.

Following last week's earnings report, FirstCash Holdings' six analysts are forecasting 2025 revenues to be US$3.40b, approximately in line with the last 12 months. Per-share earnings are expected to grow 10% to US$6.92. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.41b and earnings per share (EPS) of US$6.78 in 2025. So the consensus seems to have become somewhat more optimistic on FirstCash Holdings' earnings potential following these results.

See our latest analysis for FirstCash Holdings

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.9% to US$148. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values FirstCash Holdings at US$155 per share, while the most bearish prices it at US$138. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that FirstCash Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.4% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it seems obvious that FirstCash Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards FirstCash Holdings following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on FirstCash Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for FirstCash Holdings going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with FirstCash Holdings .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.