Payday lenders a winner, led by Cash America's spinoff plan, higher guidance

A winning segment amid today's carnage was pawn shops and payday lenders, sparked by Cash America's (CSH) plan to consider spinning off its online lending business.

CSH said that while a final decision has not been made, the separation of its Enova International business would create a publicly traded company with ~$766M in revenue as of Dec. 31; in the event of a spinoff, CSH would operate the storefront pawn lending businesses, while Enova would run the online lending business with operations in the U.S., U.K., Australia and Canada.

CSH also raised its Q1 EPS guidance to $1.50-$1.55 from its prior $1.25 estimate, thanks to lower consumer loan losses at the online business, as well as improved sales and operating efficiencies at its storefront retail business.

In today's trade: CSH +12.3%, EZPW +4.4%, FCFS +1.4%, DLLR -0.2%.

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