Dollar Financial Corp. (DLLR), located in Berwyn, Pennsylvania, 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 difficult economic environment. Net income increased by 12.9%, based on strong growth especially in the U.S. markets, as a result of acquisitions. After reviewing the 1Q09 results, we are adjusting our FY09 and FY10 estimates.

Dollar Financial continues to exhibit strong growth both in U.S. and in U.K. and Canada, though the top-line will be impacted by the strengthening of the U.S. Dollar. Relative valuation looks quite attractive at present, and therefore we maintain our Buy recommendation on the shares of Dollar Financial Corp.