EZcorp Lowers Earnings Guidance, Shares Tumble

AUSTIN, Texas (AP) — Ezcorp Inc., a pawn shop owner and payday lender, lowered its 2009 earnings guidance on Thursday due to weaker-than-expected demand for its loans and used merchandise.

The company now expects earnings in the fiscal third quarter of 29 cents to 31 cents per share, down from previous guidance of 34 cents per share which had matched analysts' expectations.

For the fourth quarter, the company now expects a profit of 41 cents to 43 cents per share, compared with prior estimates of 46 cents to 48 cents per share. Analysts polled by Thomson Reuters have forecast profit of 46 cents per share, on average.

Accordingly, the company now predicts full-year profit of $1.40 to $1.44 per share instead of $1.50 to $1.52 per share. The new range is well below Wall Street's average estimate of $1.51 per share.

"As we have moved through our June quarter, we have seen lower-than-anticipated levels of demand in our U.S. operations for our loan products and previously owned merchandise," said Joe Rotunda, president and chief executive, in a statement.

Shares fell 8 cents to close earlier at $12.89, but tumbled $1.29, or 10 percent, to $11.60 after the news was announced.