Rent-A-Center, Inc. Second Quarter Earnings Sneak Peek

Rent-A-Center, Inc. (NASDAQ:RCII) will unveil its latest earnings on Monday, July 25, 2011. Rent-A-Center, Inc. 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 72 cents per share, no change from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 78 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 72 cents during the last month. For the year, analysts are projecting net income of $2.98 per share, a rise of 5.7% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported profit of 79 cents per share versus a mean estimate of net income of 85 cents per share. In fourth quarter of the last fiscal year, the company beat estimates by 3 cents.

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Wall St. Revenue Expectations: On average, analysts predict $699.5 million in revenue this quarter, a rise of 4.2% from the year ago quarter. Analysts are forecasting total revenue of $2.88 billion for the year, a rise of 5.5% from last year’s revenue of $2.73 billion.

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

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 14.1% from the year earlier quarter, while the figure dropped 27.1% in the fourth quarter of the last fiscal year.

The company’s revenue has now risen for two straight quarters. In first quarter, revenue increased 3.3% to $742.2 million from the year earlier quarter. In the fourth quarter of the last fiscal year, the figure rose 0.6%.

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).

Stock Price Performance: During April 21, 2011 to July 19, 2011, the stock price had fallen $3.12 (-9.1%) from $34.13 to $31.01. 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% (+$3.03) 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% (-$3.91) over that span. Shares are down 98 cents (-3.1%) year to date.

(Source: Xignite Financials)

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