Rent-A-Center Earnings: The Profit Streak Continues

Rent-A-Center (NASDAQ:RCII) reported its results for the first quarter. Rent-A-Center is an operator in the United States rent-to-own industry.

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Rent-A-Center Earnings Cheat Sheet for the First Quarter

Results: Net income for Rent-A-Center rose to $51.9 million (87 cents per share) vs. $44.2 million (69 cents per share) in the same quarter a year earlier. This marks a rise of 17.4% from the year-earlier quarter.

Revenue: Rose 12.5% to $835.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rent-A-Center beat the mean analyst estimate of 84 cents per share. It beat the average revenue estimate of $810.1 million.

Quoting Management: “We delivered excellent results in the quarter, as we reported both record total revenues and earnings,” said Mark E. Speese, the Company’s Chairman and Chief Executive Officer. “Total revenue and same store sales benefited in the quarter from more customers than expected exercising their early purchase option. However, this does not create recurring revenue,” Speese continued. “The demand for our products and services remained steady in the quarter. We believe we are well positioned with our marketing and advertising plans in place to continue to drive customer traffic. As such, we remain optimistic in achieving our 2012 total revenue and diluted earnings per share guidance as previously provided in our fourth quarter 2011 earnings press release,” Speese concluded.

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 8.9% to $737.5 million in the fourth quarter of the last fiscal year. The figure rose 6% in the third quarter of the last fiscal year from the year earlier and climbed 4% in the second quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 3 cents in the fourth quarter of the last fiscal year and by 2 cents in the third quarter of the last fiscal year.

Net income has increased 3.7% year-over-year on average across the last five quarters. The biggest gain came in the fourth of the last fiscal year, when income climbed 54.8% from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 78 cents a share to 75 cents over the last ninety days. The average estimate for the fiscal year is $3.12 per share, down from $3.22 ninety days ago.

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

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