FirstCash Holdings, Inc. (NASDAQ:FCFS) Just Beat EPS By 7.5%: Here's What Analysts Are Forecasting For Next Year

A week ago, FirstCash Holdings, Inc. (NASDAQ:FCFS) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of US$936m arriving 8.6% ahead of forecasts. Statutory earnings per share (EPS) were US$1.86, 7.5% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for FirstCash Holdings from seven analysts is for revenues of US$4.03b in 2026. If met, it would imply a notable 16% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 31% to US$9.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.73b and earnings per share (EPS) of US$8.96 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

See our latest analysis for FirstCash Holdings

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.0% to US$182per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values FirstCash Holdings at US$205 per share, while the most bearish prices it at US$157. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the FirstCash Holdings' past performance and to peers in the same industry. We would highlight that FirstCash Holdings' revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2026 being well below the historical 18% p.a. growth over the last five years. Compare this to the 57 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 14% per year. Factoring in the forecast slowdown in growth, it looks like FirstCash Holdings is forecast to grow at about the same rate as the wider industry.

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. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. 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..

And what about risks? Every company has them, and we've spotted 2 warning signs for FirstCash Holdings you should know about.

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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.