Aaron’s Inc. Earnings Cheat Sheet: The Profit Streak Continues

Aaron’s Inc. (NYSE:AAN) reported its results for the third quarter. Aaron’s is engaged in the sales and lease ownership, specialty retailing and rental of residential and office furniture, consumer electronics and home appliances and accessories.

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Aaron’s Earnings Cheat Sheet for the Third Quarter

Results: Net income for the specialty retail company rose to $28 million (36 cents per share) vs. $26.2 million (32 cents per share) in the same quarter a year earlier. This marks a rise of 7.1% from the year earlier quarter.

Revenue: Rose 7.3% to $485.2 million from the year earlier quarter.

Actual vs. Wall St. Expectations: AAN fell short of the mean analyst estimate of 38 cents per share. Analysts were expecting revenue of $483 million.

Quoting Management: “We once again are seeing strong revenue gains with same store revenues up 5.3% and same store customer counts up 6.3% over the third quarter of last year,” said Robert C. Loudermilk, Jr., President and Chief Executive Officer of Aaron’s. “Even though these gains are outstanding considering the current economic conditions and the traditionally more difficult summer months in our business, there is no doubt that our customers are struggling as a result of high unemployment and overall economic pressures. However, we believe we are successfully meeting these challenges and that business will remain good in the upcoming quarters.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 8.5% to $482.7 million in the second quarter. The figure rose 7.6% in the first quarter from the year earlier and climbed 8.6% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell short of estimates last quarter after being in line with expecations the quarter before with net income of 41 cents.

The increase in profit last quarter comes after net income fell in the previous quarter. In the second quarter, net income declined 55.8% to $10.8 million.

Looking Forward: The average estimate for the fourth quarter is steady at 44 cents a share. The average estimate for the fiscal year is $1.78 per share, a rise from $1.77 ninety days ago.

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).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)