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Rent-A-Center, Inc. (RCII)

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Rent-A-Center, Inc. (RCII) leverages an extensive network of stores to effectively penetrate its target markets. Despite a sluggish economic recovery, the company witnessed healthy demand for its product and services, aiding it to post better-than-expected second-quarter 2012 results.

The quarterly earnings of $0.74 per share beat the Zacks Consensus Estimate of $0.71, and rose 8.8% from the prior-year quarter on the back of growth in the top line. The company's top-line jumped 7.4%, boosted by higher revenue from the RAC Acceptance. Management reiterated its fiscal 2012 earnings projection of $3.00 to $3.20 per share and maintained its revenue growth forecast of 7% to 10% for the year.

The company remains optimistic about its future growth prospects, with store openings in international markets and accelerated rollout of RAC Acceptance kiosks. Due to continued tightening of the credit market, customers see rent-to-own as a more viable option to credit.

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