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Aaron’s (AAN - Free Report) recently beat the Wall Street estimate when the company reported earnings on February 17. The company earned $0.50 per share and that was $0.05 ahead of the Wall Street consensus estimate of $0.45.
Revenues came in at $795M, down 3.2% from the year ago period and below the consensus estimate of $814.8M.
Taken together, the revenue miss and earnings beat would probably be a forgivable sin and it certainly would not make it a Zacks Rank #5 (Strong Sell). So why did the Rank fall?
Guidance
The company guided Wall Street below its expectations, and that means that estimates are going to fall. The company said they expect FY2017 EPS of between $2.15 - $2.40 when Wall Street was looking for $2.46.
The Zacks Consensus Estimate for 2017 slipped from $2.47 to $2.28 over the last seven days and there was also a big move lower for the 2018 number. It moved from $2.80 to $2.68.
Not all the estimates are in yet, with a few analysts yet to report back. This could mean that estimates move lower from their already beaten up position.
Company Description
Aaron's is engaged in the sales and lease ownership and specialty retailing of residential and office furniture, consumer electronics, home appliances and accessories. It is engaged in the lease ownership, lease and retail sale of a variety of products, such as widescreen and LCD televisions, computers, living room and bedroom furniture, and refrigerators The company offers products of various brands, such as JVC, Mitsubishi, Philips, Panasonic, Sony, Dell, Hewlett-Packard, Simmons, Frigidaire, and Sharp. Aaron's, Inc. is based in Atlanta, Georgia.
Closing Stores
The company noted that they closed 61 stores in the fourth quarter of 2016. On top of that they also see another 70 stores to close in 2Q17. Logically, the lower number of stores could lead to lower sales in the future.
Guidance for sales was inline, with the company projecting $3.1B - $3.31B when the Wall Street Estimate was calling for $3.26B.
Efficiency better increase per store if AAN is going to meet the sales goals.
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Bear Of The Day: Aaron's (AAN)
Aaron’s (AAN - Free Report) recently beat the Wall Street estimate when the company reported earnings on February 17. The company earned $0.50 per share and that was $0.05 ahead of the Wall Street consensus estimate of $0.45.
Revenues came in at $795M, down 3.2% from the year ago period and below the consensus estimate of $814.8M.
Taken together, the revenue miss and earnings beat would probably be a forgivable sin and it certainly would not make it a Zacks Rank #5 (Strong Sell). So why did the Rank fall?
Guidance
The company guided Wall Street below its expectations, and that means that estimates are going to fall. The company said they expect FY2017 EPS of between $2.15 - $2.40 when Wall Street was looking for $2.46.
The Zacks Consensus Estimate for 2017 slipped from $2.47 to $2.28 over the last seven days and there was also a big move lower for the 2018 number. It moved from $2.80 to $2.68.
Not all the estimates are in yet, with a few analysts yet to report back. This could mean that estimates move lower from their already beaten up position.
Company Description
Aaron's is engaged in the sales and lease ownership and specialty retailing of residential and office furniture, consumer electronics, home appliances and accessories. It is engaged in the lease ownership, lease and retail sale of a variety of products, such as widescreen and LCD televisions, computers, living room and bedroom furniture, and refrigerators The company offers products of various brands, such as JVC, Mitsubishi, Philips, Panasonic, Sony, Dell, Hewlett-Packard, Simmons, Frigidaire, and Sharp. Aaron's, Inc. is based in Atlanta, Georgia.
Closing Stores
The company noted that they closed 61 stores in the fourth quarter of 2016. On top of that they also see another 70 stores to close in 2Q17. Logically, the lower number of stores could lead to lower sales in the future.
Guidance for sales was inline, with the company projecting $3.1B - $3.31B when the Wall Street Estimate was calling for $3.26B.
Efficiency better increase per store if AAN is going to meet the sales goals.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>
Aaron's, Inc. Price and Consensus
Aaron's, Inc. Price and Consensus | Aaron's, Inc. Quote