Top Performer for Tuesday: Aaron's (AAN)

Aaron's, Inc. (AAN) is getting more business because of this economic slump, which helped its first-quarter earnings per share top the consensus.

The company also decided to raise its earnings per share outlook for 2009.

"Our business has been especially strong in recent quarters as more consumers are finding it extremely attractive to use the Aaron's option of obtaining basic home furnishings necessities with no credit checks and the ability to return the merchandise at any time," stated President and CEO Robert C. Loudermilk, Jr.

Yesterday, AAN announced earnings per share from continuing operations of 65 cents, which beat the consensus by more than 27%. The company has a good record of surpassing Wall Street's quarterly expectations. The result also marked a solid year-over-year advance.

Revenues moved to $474 million, or 15% better than last year's $412.7 million. Same-store revenues advanced 12.3%.

For 2009, AAN raised its earnings per share guidance to between $1.90 and $2.05, compared to its previous outlook of $1.72 to $1.87. Revenue is now expected at $1.8 billion, an increase from the prior guidance of $1.75 billion.

Earnings estimates for this year and next haven't moved much in the last couple of months, but are up 2.8% and 7.4%, respectively, from 3 months ago. However, AAN's solid quarterly performance and updated guidance could bring a fresh wave of positive momentum.

At the moment, analysts expect next year's profit to advance almost 13% from this year.

With a gain of more than 15% so far today, AAN has made the Zacks #1 Rank Top Performers List for Tuesday.

AAN is the only company from the Fin-Leasing Cos. industry on today's Zacks #1 Rank List, which includes 225 stocks.

AAN is the nation's leader in the sales and lease ownership and specialty retailing of residential and office furniture, consumer electronics, home appliances and accessories.

Read the full analyst report on AAN