Aaron’s, Inc. Second Quarter Earnings Sneak Peek

Aaron’s, Inc. (NASDAQ:AAN) will unveil its latest earnings on Monday, July 25, 2011. 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, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 41 cents per share, a rise of 36.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 39 cents. For the year, analysts are projecting net income of $1.77 per share, a rise of 22.9% from last year.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with profit of 55 cents per share against the mean estimate of 51 cents. In the prior quarter, the company reported net income of 38 cents.

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Wall St. Revenue Expectations: On average, analysts predict $482.1 million in revenue this quarter, a rise of 8.3% from the year ago quarter. Analysts are forecasting total revenue of $2.02 billion for the year, a rise of 7.4% from last year’s revenue of $1.88 billion.

Analyst Ratings: Analysts are bullish on this stock with six analysts rating it as a buy, none rating it as a sell and five rating it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 20.1% while it rose 22.8% in the fourth quarter of the last fiscal year and 6.3% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 7.6% to $532.7 million in first quarter. The figure rose 8.6% in the fourth quarter of the last fiscal year from the year earlier, climbed 8.9% in the third quarter of the last fiscal year from the year-ago quarter and 6.6% in the second quarter of the last fiscal year.

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).

Stock Price Performance: During April 1, 2011 to June 28, 2011, the stock price had risen $2.44 (9.5%) from $25.59 to $28.03. The stock price saw one of its best stretches over the last year between September 17, 2010 and September 28, 2010 when shares rose for eight-straight days, rising 10.5% (+$1.75) over that span. It saw one of its worst periods between May 31, 2011 and June 6, 2011 when shares fell for five-straight days, falling 3.8% (-$1.06) over that span. Shares are up $7.66 (+37.6%) year to date.

(Source: Xignite Financials)

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