Aaron’s Earnings Sneak Peek

Aaron’s, Inc. (NYSE:AAN) will unveil its latest earnings on Friday, October 26, 2012. 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.

Aaron’s, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 43 cents per share, a rise of 19.4% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of $2.03 per share, a rise of 39% from last year.

Past Earnings Performance: Last quarter, the company met expectations by reporting profit of 47 cents per share last quarter. In the previous first quarter, the company beat estimates by 4 cents.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

A Look Back: In the second quarter, profit rose more than threefold to $36.2 million (47 cents a share) from $10.8 million (13 cents a share) the year earlier, meeting analyst expectations. Revenue rose 11.8% to $539.5 million from $482.7 million.

Stock Price Performance: Between July 27, 2012 and October 22, 2012, the stock price fell $3.48 (-11.5%), from $30.36 to $26.88. The stock price saw one of its best stretches over the last year between July 11, 2012 and July 19, 2012, when shares rose for seven straight days, increasing 6.2% (+$1.75) over that span. It saw one of its worst periods between October 4, 2012 and October 12, 2012 when shares fell for seven straight days, dropping 2.8% (-78 cents) over that span.

Wall St. Revenue Expectations: On average, analysts predict $528.9 million in revenue this quarter, a rise of 9% from the year-ago quarter. Analysts are forecasting total revenue of $2.22 billion for the year, a rise of 9.9% from last year’s revenue of $2.02 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.3% in the third quarter of the last fiscal year, 8.1% in the fourth quarter of the last fiscal year and 10.2% in the first quarter before increasing again in the second quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 75.6% for the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.31 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Analyst Ratings: There are mostly holds on the stock with six of 11 analysts surveyed giving that rating.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Here’s Why Pharma Stocks are in Play

Tesla Motors: Is It Time to Buy Into the EV Revolution?

Apple Earnings Sneak Peek