Rent-A-Center Inc. Fourth Quarter Earnings Sneak Peek

Rent-A-Center, Inc. (NASDAQ:RCII) will unveil its latest earnings on Monday, January 30, 2012. Rent-A-Center is an operator in the United States rent-to-own industry.

Rent-A-Center, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 82 cents per share, a rise of 15.5% 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 81 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 82 cents during the last month. Analysts are projecting profit to rise by 2.5% versus last year to $2.89.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the third quarter, the company reported net income of 60 cents per share versus a mean estimate of profit of 58 cents per share. In the second quarter, the company missed estimates by 4 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 9.5% in revenue from the year-earlier quarter to $741.1 million.

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

A Look Back: In the third quarter, profit fell 22.9% to $31.2 million (52 cents a share) from $40.5 million (62 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 6% to $704.3 million from $664.6 million.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 4% in the second quarter from the year earlier, climbed 3.3% in the first quarter from the year-ago quarter and 0.6% in the fourth quarter of the last fiscal year.

Competitors to Watch: Aaron’s, Inc. (NYSE:AAN), 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).

Stock Price Performance: During November 23, 2011 to January 24, 2012, the stock price had risen $4.32 (13%) from $33.19 to $37.51. The stock price saw one of its best stretches over the last year between June 22, 2011 and July 7, 2011 when shares rose for 11-straight days, rising 10.5% (+$3) over that span. It saw one of its worst periods between May 31, 2011 and June 8, 2011 when shares fell for seven-straight days, falling 12.1% (-$3.87) over that span.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com