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

Rent-A-Center, Inc. (NASDAQ:RCII) will unveil its latest earnings on Monday, October 24, 2011. 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 net income of 58 cents per share, a decline of 6.5% 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 67 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 58 cents during the last month. For the year, analysts are projecting profit of $2.87 per share, a rise of 1.8% from last year.

Past Earnings Performance: The company is looking to break the streak of missing estimates in the past two quarters. Last quarter, it fell short of analyst expectations by reporting net income of 68 cents per share against an estimate of profit of 72 cents per share. The quarter before that, it missed forecasts by 6 cents.

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Wall St. Revenue Expectations: On average, analysts predict $697.5 million in revenue this quarter, a rise of 5% from the year ago quarter. Analysts are forecasting total revenue of $2.87 billion for the year, a rise of 5.1% from last year’s revenue of $2.73 billion.

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 second quarter, profit fell 16.6% to $39.9 million (63 cents a share) from $47.8 million (72 cents a share) the year earlier, missing analyst expectations. Revenue rose 4% to $698.3 million from $671.5 million.

Key Stats:

The company has seen net income fall in each of the last three quarters. Net income fell 14.1% in the first quarter and 27.1% in the fourth quarter of the last fiscal year.

Revenue has gone up for three straight quarters. It rose 3.3% in the first quarter from the year earlier and 0.6% in the fourth quarter of the last fiscal year.

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 August 22, 2011 to October 18, 2011, the stock price had risen $7.23 (30.6%) from $23.60 to $30.83. 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% (+$3.02) 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% (-$3.88) over that span. Shares are down 98 cents (-3.1%) year to date.

(Source: Xignite Financials)

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

 

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