The World Acceptance Corporation (NASDAQ: WRLD) stock witnessed a notable surge on the US charts. Following the release of quarterly results, WRLD stock experienced a 17.32% increase to conclude the session at $142.67. In the midst of ongoing economic unpredictability, the company maintained a focus on credit quality and careful lending operations, as highlighted in its latest financial report for the third quarter of fiscal 2024.
During this quarter, the net income marked a substantial climb, reaching $16.7 million, a significant leap compared to the $5.8 million recorded in the corresponding period of the previous year. Similarly, the net income per diluted share escalated from $0.99 to $2.84 over the same timeframe. In the third quarter of fiscal 2024, interest and fee income witnessed a 6.0% decline, settling at $118.7 million, while overall revenues experienced a matching 6.0% decrease, reaching $137.7 million.
Additionally, there was a 15.9% decline in insurance income, falling $14.5 million. Over the year, chnages took place in the structure of the loan portfolio, witnessing a decline in the proportion of substantial loans from 56.4% to 55.2%. Noteworthy are the positive trajectories observed in returns on insurance and interest rates, with increases of 180 and 160 basis points, respectively.
World Acceptance Corporation took a proactive approach by diminishing its provision for credit losses. The decrease from $59.6 million in the third quarter of fiscal 2023 to $40.6 million in the third quarter of fiscal 2024 resulted from implementing the current expected credit loss ("CECL") methodology to estimate foreseeable losses. As part of its financial strategy, the company carried out share repurchases, dedicating around $17.2 million to obtain 148,765 shares of its common stock from the open market in the third quarter of fiscal 2024.
This is consistent with its prior buyback endeavors, which involved acquiring 589,533 shares in fiscal 2022 at an estimated total expenditure of approximately $111.1 million and purchasing 73,643 shares in fiscal 2023 at a cost of $14.3 million. Overall, World Acceptance Corporation is strategically positioned for enduring stability amidst economic uncertainty due to its proactive initiatives and judicious spending practices.