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Factors Likely to Influence Aaron's (AAN) in Q1 Earnings

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The Aaron's Company, Inc. (AAN - Free Report) is scheduled to report first-quarter 2021 results on Apr 27. The Zacks Consensus Estimate for first-quarter earnings is pegged at 56 cents per share, which has moved north 30% in the past 60 days. For quarterly revenues, the Zacks Consensus Estimate stands at $432.7 million in the reported quarter.

In the last reported quarter, the company delivered an earnings surprise of 1.28%.

Key Factors to Note

Aaron’s has been benefiting from investments in customer servicing, advanced technologies, new store formats and strength in the digital business. Also, strong customer payment activity, improved lease portfolio size and a rise in retail sales bode well.

Further, the company has been witnessing solid online traffic, driven by customers’ increasing preference for affordable home products online. Moreover, gains from online customer acquisition and higher conversion rates stemming from improved inventory position are likely to have helped retain the positive momentum in the digital space.

Apart from these, its GenNext store strategy focused on remodeling stores via enhanced technologies, better brand image and expansion of products might have aided the company’s top line in the first quarter.

However, it likely to have witnessed elevated expenses related to COVID-19 along with higher advertising spend. Also, soft sales due to store closures in certain regions, stemming from the pandemic, might have hurt the first-quarter results.

The Aarons Company, Inc. Price and EPS Surprise

Zacks Model

Our proven model doesn’t conclusively predict an earnings beat for Aaron's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Aaron's has a Zacks Rank #3 and an Earnings ESP of 0.00%.

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.

Fox Corporation (FOXA - Free Report) currently has an Earnings ESP of +13.64% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Gildan Activewear, Inc. (GIL - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #1, at present.

DISH Network Corporation currently has an Earnings ESP of +3.64% and a Zacks Rank #2.

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