Dollar Financial Improving

Dollar Financial Corp. (DLLR - Analyst Report) of Berwyn, PA is an international financial services company serving under-banked consumers. DLLR provides a range of consumer financial products and services primarily consisting of check cashing, short-term consumer loans, Western Union money orders and money transfers, along with other conveniences such as utility bill payments, currency exchange, and tax preparation.

DLLR's 1Q09 (ended September 30, 2008) diluted earnings of $0.55 per share were ahead of consensus estimates. The company continued to deliver outstanding revenue growth (17.0% during the reported quarter), despite a difficult economic environment. Net income increased 12.9%, based on strong growth especially in the U.S. markets, as a result of acquisitions.

The company continues to exhibit strong growth both in U.S. and in U.K. and Canada, though the top line will be impacted by the recent strengthening of the U.S. dollar. Ahead of the 2Q09 results, we are slightly moderating our FY09 estimates, mainly to reflect the currency impact. We are maintaining our Buy recommendation on the shares of DLLR.

Read the full analyst report on DLLR

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