FORT WORTH, Texas (AP) -- Shares of Cash America International tumbled 20 percent Thursday after the payday lender and pawn shop posted second-quarter profits below Wall Street predictions and issued a weak outlook for the quarter and year.
The company earned $29.8 million, or 94 cents per share, up 11 percent from $27 million, or 84 cents per share, in the same quarter last year.
Analysts, on average, expected a profit of 97 cents per share, according to a FactSet poll.
Revenue grew 19 percent to $411.6 million from $345.9 million, as consumer loan fees jumped 36 percent to $180.7 million and proceeds from the sale of merchandise rose 8.4 percent to $156 million. Pawn loan fees and service charges increased 8.4 percent to $72.1 million.
The results came a day after the Fort Worth, Texas, company filed papers to drop a proposed spinoff of Enova International Inc., its online lending business, through an initial public offering. It blamed volatility in the IPO market.
The company said that $3 million in costs related to the failed IPO are expected to reduce the company's third-quarter profit by $1.9 million, or 6 cents per share.
Cash America said the lower-than-expected second-quarter profit was a result of weaker-than-expected demand for its pawn-related loans. While the company said it expects its pawn lending business to continue to grow in the second half of the year, it may not be at the rate it previously expected.
Based on those expectations, Cash America predicted a third-quarter profit of 95 cents to $1.05 per share, excluding the 6 cents per share related to the Enova IPO. For the full year 2012, Enova said it expects an adjusted profit of $4.35 to $4.60 per share.
Analysts polled by FactSet expect third-quarter and full-year profits of $1.26 and $4.95, respectively.
Shares of Cash America International Inc. dropped $8.20, or 18 percent, to $36.92 in heavy afternoon trading, after falling as low as $36 earlier in the day and easily passing its previous 52-week low of $40.02. The drop marked the company's lowest share price since November 2010.