Aaron’s, Inc. (NYSE:AAN) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Aaron’s, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 4.69% to $0.67 in the quarter versus EPS of $0.64 in the year-earlier quarter.
Revenue: Rose 1.41% to $595.14 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Aaron’s, Inc. reported adjusted EPS income of $0.67 per share. By that measure, the company missed the mean analyst estimate of $0.71. It missed the average revenue estimate of $632.09 million.
Quoting Management: “While revenues and Non-GAAP earnings are above last year’s first quarter results, we expected more growth. Demand by customers in both our Company-operated and franchised stores has been less than anticipated,” said Ronald W. Allen, Chairman, President and Chief Executive Officer of Aaron’s. “We believe results for the quarter were affected by the overall difficult economic environment for our middle to lower income customers, including increases in their payroll taxes and delays in their income tax refunds. Although same store revenue and customer count growth remains very good, this growth was less than planned which resulted in the first quarter operating results being below expectations. Based upon these results and current market conditions, we are reducing our revenue and earnings guidance for the year.”
Key Stats (on next page)…