Rent-A-Center Inc. (NASDAQ:RCII) reported its results for the second quarter. Rent-A-Center, Inc. is an operator in the United States rent-to-own industry.
Rent-A-Center Earnings Cheat Sheet for the Second Quarter
Results: Net income for the rental and leasing services company fell to $39.9 million (63 cents per share) vs. $47.8 million (72 cents per share) a year earlier. This is a decline of 16.6% from the year earlier quarter.
Revenue: Rose 4% to $698.3 million from the year earlier quarter.
Actual vs. Wall St. Expectations: RCII reported adjusted net income of 68 cents per share. By that measure, the company fell short of mean estimate of 72 cents per share. Analysts were expecting revenue of $699.5 million.
Quoting Management: “Our results for the quarter for our total revenues and earnings were within our expectations,” said Mark E. Speese, the Company’s Chairman and Chief Executive Officer. “Our core rent-to-own customer demand outperformed the comparable period in 2010 even though our customers remain financially constrained by higher fuel and food prices.”
The company has now seen net income fall in each of the last three quarters. In the first quarter, net income fell 14.1% from the year earlier, while the figure fell 27.1% in the fourth quarter of the last fiscal year.
Revenue has now gone up for three straight quarters. In the first quarter, revenue rose 3.3% to $742.2 million while the figure rose 0.6% in the fourth quarter of the last fiscal year from the year earlier.
The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 6 cents with net income of 79 cents versus a mean estimate of net income of 85 cents per share.
Competitors to Watch: Aaron’s, Inc. (NYSE:AAN), AeroCentury Corp. (AMEX:ACY), McGrath RentCorp (NASDAQ:MGRC), Best Buy Co., Inc. (NYSE:BBY), GameStop Corp. (NYSE:GME), RadioShack Corporation (NYSE:RSH), CONN’S, Inc. (NASDAQ:CONN), hhgregg, Inc. (NYSE:HGG), and Electro Rent Corporation (NASDAQ:ELRC).
(Source: Xignite Financials)