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Things You Need to Know Before Aaron's (AAN) Q3 Earnings

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The Aaron's Company, Inc. (AAN - Free Report) is scheduled to report third-quarter 2021 results on Oct 26. The Zacks Consensus Estimate for third-quarter earnings is pegged at 56 cents per share, which has been unchanged in the past 30 days. For quarterly revenues, the Zacks Consensus Estimate stands at $434.3 million for the to-be-reported quarter.

In the last reported quarter, the company delivered an earnings surprise of 64.1%.

Key Factors to Note

Aaron’s has been benefiting from a solid demand, higher customer payment activities and a robust lease portfolio. An increased focus on advanced technology, digital payment facilities, and improved in-store and online shopping experiences are likely to have boosted the performance in the to-be-reported quarter.

The company has been witnessing continued strength in its e-commerce business, driven by enhanced digital payment methods, improved shopping experience, expanded product assortment, better product visibility and self-service account management. The persistence of the trends is expected to have aided the company’s top line in the third quarter.

Management remains on track with its GenNext real estate strategy, which has been performing well. A higher number of GenNext stores, stemming from increased investment, is expected to have contributed to its third-quarter performance.

However, it has been reeling under sluggishness in franchisee revenues due to reduced franchise locations. Adverse impacts related to this might have hurt the third-quarter performance.

The Aaron's Company, Inc. Price and EPS Surprise

 

The Aaron's Company, Inc. Price and EPS Surprise

The Aaron's Company, Inc. price-eps-surprise | The Aaron's Company, Inc. Quote

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 With Favorable Combinations

Here are some companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this season.

Central Garden & Pet Company (CENT - Free Report) presently has an Earnings ESP of +22.22% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fox Corporation (FOXA - Free Report) currently has an Earnings ESP of +7.66% and a Zacks Rank #2.

Steven Madden (SHOO - Free Report) currently has an Earnings ESP of +4.55% and a Zacks Rank #2.

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