Nicholas Financial Earns 42 Cents Per Share

The results are out! For their fiscal second quarter, Nicholas Financial ($NICK) earned 42 cents per share. This was on the low side of my expectations, but it’s hardly troubling. The company was dinged by about four cents per share (pre-tax, about 2.4 cents per share by my math, post tax) on their interest rate swaps. Operating costs rose about 8% over the last rise which is pretty steep considering that revenues only rose about 3% over last year.

Still, the fundamentals of NICK’s business look solid. Their pre-tax yield is still running over 12% which is very good. My assumption is that NICK will earn about 45 cents per share for the next several quarters (plus or minus).

Put it this way: Even if NICK’s numbers for this quarter were to continue for the next four quarters (and I tend to doubt that since this was on the low side), that still means NICK would earn $1.69 per share for the year. That’s less than eight times earnings going by yesterday’s close.

Here’s a spreadsheet of NICK’s financials going back a few years.

Posted by on October 31st, 2012 at 12:11 pm

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