The spinoff would allow Cash America to shift focus to its storefront pawn lending operations. The company has not yet made a decision, but the spinoff would create a separate publicly-traded company with approximately $766 in revenue as of Dec. 31.
Should a spinoff occur, Enova would own and operate the online lending business in the U.S., U.K., Australia and Canada, while Cash America International would own and operate the more than 1,000 storefront lending businesses in the U.S. and Mexico. David Fisher has been Enova's CEO since Jan. 2013 and would continue to serve in that capacity.
"As independent companies, both Cash America and Enova would be better positioned to focus on their industry-specific business strategies and the regulatory environments related to the specific products each company offers," CEO Daniel Feehan said in a statement.
Cash America also increased its first-quarter earnings per share guidance to a range of $1.50 to $1.55 from $1.25. This new range is well above the Capital IQ consensus estimate of $1.21 a share.
The stock was up 8.7% to $41.85 at 11:55 a.m.
Separately, TheStreet Ratings team rates CASH AMERICA INTL INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: