Pawn shop operator First Cash Financial boosts its estimate for 2009 profit by 5 cents

First Cash Financial raises 2009 profit forecast

ARLINGTON, Texas — Pawn shop operator First Cash Financial Services Inc. on Thursday raised its profit estimates for its fourth quarter and full year on the strength of its revenue in the United States and Mexico.

It now expects to earn between 42 cents and 44 cents per share for the fourth quarter, up from 37 cents to 39 cents. For the year, it expects to earn $1.37 to $1.39, up from $1.32 to $1.34.

The company expects its quarterly profit to rise by 20 percent to 26 percent and annual by 12 percent to 14 percent.

The new estimates exclude earnings from payday lending stores in California, Washington and Oregon that the company has sold.

CEO Rick Wessel said in a statement that selling the 22 stores will let the company focus on pawn operations, while the proceeds helped it pay off a $90 million revolving credit facility.

Sales of scrap jewelry increased throughout the quarter as gold prices rose.

In 2010, the company anticipates opening 65 to 75 new stores, the majority of which will be in Mexico. Among the 66 stores First Cash opened in 2009, 60 were in Mexico.

Shares rose 35 cents, or 1.6 percent, to close at $22.04.