We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Rent-A-Center (RCII) Q2 Earnings: What Awaits the Stock?
Read MoreHide Full Article
Rent-A-Center, Inc. is slated to release second-quarter 2016 results on Jul 27. The question lingering in the minds of investors is, whether this leading rent-to-own store operator will continue with its positive earnings surprise streak in the quarter to be reported. In the preceding four quarters, the company outperformed the Zacks Consensus Estimate by an average of 8.1%. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Rent-A-Center is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Rent-A-Center has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 50 cents. Rent-A-Center’s Zacks Rank #3 (Hold) increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
Factors Influencing this Quarter
Rent-A-Center’s new labor model, supply chain initiatives and value-based pricing strategy may have a favorable impact on the quarter to be reported. The company’s business model, Acceptance Now, is also gaining traction as it enhances consumers’ shopping experience.
Rent-A-Center posted the fifth straight quarter of positive earnings surprise when it reported first-quarter 2016 results. However, earnings per share declined year over year. Total revenue also dropped year over year and came in below analysts’ expectations for the third quarter in a row. The decrease in the top line is attributable to a decline witnessed across the Core U.S. and Mexico segments. As a result, analysts remain a little wary about the company’s top-line performance.
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Big Lots Inc. (BIG - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank #2 (Buy).
Expedia Inc. (EXPE - Free Report) has an Earnings ESP of +17.07% and a Zacks Rank #3.
GameStop Corp. (GME - Free Report) has an Earnings ESP of +17.86% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Rent-A-Center (RCII) Q2 Earnings: What Awaits the Stock?
Rent-A-Center, Inc. is slated to release second-quarter 2016 results on Jul 27. The question lingering in the minds of investors is, whether this leading rent-to-own store operator will continue with its positive earnings surprise streak in the quarter to be reported. In the preceding four quarters, the company outperformed the Zacks Consensus Estimate by an average of 8.1%. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat
Our proven model does not conclusively show that Rent-A-Center is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Rent-A-Center has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate are both pegged at 50 cents. Rent-A-Center’s Zacks Rank #3 (Hold) increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
Factors Influencing this Quarter
Rent-A-Center’s new labor model, supply chain initiatives and value-based pricing strategy may have a favorable impact on the quarter to be reported. The company’s business model, Acceptance Now, is also gaining traction as it enhances consumers’ shopping experience.
Rent-A-Center posted the fifth straight quarter of positive earnings surprise when it reported first-quarter 2016 results. However, earnings per share declined year over year. Total revenue also dropped year over year and came in below analysts’ expectations for the third quarter in a row. The decrease in the top line is attributable to a decline witnessed across the Core U.S. and Mexico segments. As a result, analysts remain a little wary about the company’s top-line performance.
RENT-A-CENTER Price, Consensus and EPS Surprise
RENT-A-CENTER Price, Consensus and EPS Surprise | RENT-A-CENTER Quote
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Big Lots Inc. (BIG - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank #2 (Buy).
Expedia Inc. (EXPE - Free Report) has an Earnings ESP of +17.07% and a Zacks Rank #3.
GameStop Corp. (GME - Free Report) has an Earnings ESP of +17.86% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>