Aaron’s Earnings: What Investors Should Watch

Aaron’s (NYSE:AAN) will report earnings after markets close on Wednesday, July 24th. Aaron’s, Inc. rents and sells office and residential furniture and accessories, consumer electronics, and household appliances. The Company also manufactures furniture, bedding, and accessories. Aaron’s has Company-owned and franchised centers in the United States.

Here is your Cheat Sheet to Aaron’s Earnings:

Earnings Expectations: Analysts expect earnings of $0.50 per share on revenues of $562.92 million. Currently, the company’s P/E ratio stands at 14.35.

Analyst Trends:

Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.51 and has not changed. For the current year, the average estimate is a profit of $2.19, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Aaron’s has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 1,593 1,753 1,877 2,024 2,223
Diluted EPS ($) 1.11 1.37 1.44 1.43 2.25

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 539.52 529.51 568.46 595.14
Diluted EPS ($) 0.47 0.38 0.48 0.67

Past Performance:
Aaron’s has beat analyst estimates 1 time in the past four quarters. This is not consistent enough to get bullish yet.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)