Aaron’s Inc. (NASDAQ:AAN) reported its results for the second quarter. Aaron’s, Inc. is engaged in the sales and lease ownership, specialty retailing and rental of residential and office furniture, consumer electronics and home appliances and accessories.
Aaron’s Earnings Cheat Sheet for the Second Quarter
Results: Net income for Aaron’s Inc. fell to $10.8 million (13 cents per share) vs. $24.4 million (30 cents per share) a year earlier. This is a decline of 55.8% from the year earlier quarter.
Revenue: Rose 8.5% to $482.7 million from the year earlier quarter.
Actual vs. Wall St. Expectations: AAN reported adjusted net income of 41 cents per share. By that measure, the company fell in line with the mean estimate of 41 cents per share. Analysts were expecting revenue of $482.1 million.
Quoting Management: “Aaron’s operating results for the quarter were as we expected and we are extremely pleased with our performance, especially in the current economic environment,” said Robert C. Loudermilk, Jr., President and Chief Executive Officer of Aaron’s. “Providing our customers with needed basic home furnishings with no credit checks and no long-term commitment has been the foundation of our business through the years, and we have proven that our Aaron’s concept is a superior model and recession resilient. We believe that business will continue to be strong throughout the remainder of the year.”
Revenue has risen the past four quarters. Revenue increased 7.6% to $532.7 million in the first quarter. The figure rose 8.6% in the fourth quarter of the last fiscal year from the year earlier and climbed 8.9% in the third quarter of the last fiscal year from the year-ago quarter.
Last quarter’s profit decrease breaks a streak of three consecutive quarters of year-over-year profit increases. Net income rose 20.1% in the first quarter from the year earlier, while the figure rose 22.8% in the fourth quarter of the last fiscal year and 6.3% in the third quarter of the last fiscal year.
The company fell in line with estimates last quarter after topping expectations in the previous two quarters. In the first quarter, it topped the mark by 4 cents, and in the fourth quarter of the last fiscal year, it was ahead by 4 cents.
Competitors to Watch: Rent-A-Center, Inc (NASDAQ:RCII), AeroCentury Corp. (AMEX:ACY), McGrath RentCorp (NASDAQ:MGRC), CONN’S, Inc. (NASDAQ:CONN), Best Buy Co., Inc. (NYSE:BBY), Williams-Sonoma, Inc. (NYSE:WSM), Pier one Imports, Inc. (NYSE:PIR), GameStop Corp. (NYSE:GME), and RadioShack Corporation (NYSE:RSH).
(Source: Xignite Financials)