Investors in FirstCash Holdings, Inc. (NASDAQ:FCFS) had a good week, as its shares rose 9.6% to close at US$132 following the release of its first-quarter results. It looks like a credible result overall - although revenues of US$836m were what the analysts expected, FirstCash Holdings surprised by delivering a (statutory) profit of US$1.87 per share, an impressive 23% above what was forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on FirstCash Holdings after the latest results.

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Following last week's earnings report, FirstCash Holdings' six analysts are forecasting 2025 revenues to be US$3.40b, approximately in line with the last 12 months. Per-share earnings are expected to climb 10% to US$6.92. In the lead-up to this report, the analysts had been modelling revenues of US$3.41b and earnings per share (EPS) of US$6.78 in 2025. So the consensus seems to have become somewhat more optimistic on FirstCash Holdings' earnings potential following these results.

See our latest analysis for FirstCash Holdings

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.9% to US$148. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic FirstCash Holdings analyst has a price target of US$155 per share, while the most pessimistic values it at US$138. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that FirstCash Holdings' revenue growth is expected to slow, with the forecast 0.4% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than FirstCash Holdings.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for FirstCash Holdings going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - FirstCash Holdings has 2 warning signs we think you should be aware of.

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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.