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Factors Likely to Decide Aaron's (AAN) Fate in Q4 Earnings
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The Aaron's Company, Inc. (AAN - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 24. The global consumer products company is likely to have witnessed revenue and earnings declines in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 37 cents per share, which indicates a decline of 53.2% from the year-ago quarter’s reported figure. The consensus mark moved down 2.6% in the past 30 days. The consensus mark for revenues is pegged at $425.9 million, indicating a decline of 1% from the figure reported in the year-ago quarter.
However, the Zacks Consensus Estimate for 2021’s sales and earnings per share suggests growth of 5.3% and 16.6%, respectively, from the year-ago period's reported numbers.
In the last reported quarter, the company delivered an earnings surprise of 56.6%. It delivered an earnings surprise of 60.8%, on average, in the trailing four quarters.
Aaron’s has been benefiting from strength in the direct-to-consumer lease-to-own market 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 top-line performance in the to-be-reported quarter.
Notably, management, on its last reported quarter’s earnings call, anticipated revenues of $1.82-$1.83 billion for the fourth quarter, up from the earlier mentioned $1.775-$1.8 billion. Same-store revenues are forecast to grow 7.5-8.5% compared with 6-8% growth stated previously.
The company has been gaining from the e-commerce business, driven by increased investments in digital marketing, improved shopping experience, same-day and next-day delivery facilities, personalization of products, and a broader assortment, including the latest product categories. Its express delivery program also bodes well.
Management has been 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 fourth-quarter performance.
However, it has been reeling under sluggishness in franchisee revenues due to reduced franchise locations. It has also been witnessing lower customer payment activity due to reduced government stimulus. Although fourth-quarter 2021 customer lease payment activity is likely to have been above the pre-pandemic level, it is anticipated to be lower than fourth-quarter 2020.
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 #4 (Sell) and an Earnings ESP of +5.41%.
Stocks With Favorable Combination
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 this season:
Gildan Activewear (GIL - Free Report) currently has an Earnings ESP of +9.57% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports fourth-quarter 2021. The Zacks Consensus Estimate for quarterly earnings moved 3.6% to 58 cents per share, suggesting 28.9% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gildan Activewear’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $731 million, which suggests a rise of 5.9% from the figure reported in the prior-year quarter. GIL has delivered an earnings beat of 85%, on average, in the trailing four quarters.
PVH Corp (PVH - Free Report) has an Earnings ESP of +0.20% and a Zacks Rank of 3 at present. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings has been unchanged at $1.98 per share in the past 30 days, suggesting a surge of 621.1% from the year-ago quarter’s reported number.
PVH Corp’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.39 billion, which suggests a rise of 14.4% from the figure reported in the prior-year quarter. PVH has delivered an earnings beat of 72.3%, on average, in the trailing four quarters.
Vail Resorts (MTN - Free Report) currently has an Earnings ESP of +5.48% and a Zacks Rank #3. MTN is anticipated to register top-line growth when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for the quarterly revenues is pegged at $195.1 million, indicating an improvement of 48.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Vail Resorts' bottom line has improved significantly in the past 30 days to a loss of $3.66 per share. However, the estimate suggests a wider loss from the loss per share of $3.63 reported in the year-ago quarter. MTN has delivered an earnings beat of 17.3%, on average, in the trailing four quarters.
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Factors Likely to Decide Aaron's (AAN) Fate in Q4 Earnings
The Aaron's Company, Inc. (AAN - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 24. The global consumer products company is likely to have witnessed revenue and earnings declines in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 37 cents per share, which indicates a decline of 53.2% from the year-ago quarter’s reported figure. The consensus mark moved down 2.6% in the past 30 days. The consensus mark for revenues is pegged at $425.9 million, indicating a decline of 1% from the figure reported in the year-ago quarter.
However, the Zacks Consensus Estimate for 2021’s sales and earnings per share suggests growth of 5.3% and 16.6%, respectively, from the year-ago period's reported numbers.
In the last reported quarter, the company delivered an earnings surprise of 56.6%. It delivered an earnings surprise of 60.8%, on average, in the trailing four quarters.
The Aaron's Company, Inc. Price and EPS Surprise
The Aaron's Company, Inc. price-eps-surprise | The Aaron's Company, Inc. Quote
Factors to Note
Aaron’s has been benefiting from strength in the direct-to-consumer lease-to-own market 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 top-line performance in the to-be-reported quarter.
Notably, management, on its last reported quarter’s earnings call, anticipated revenues of $1.82-$1.83 billion for the fourth quarter, up from the earlier mentioned $1.775-$1.8 billion. Same-store revenues are forecast to grow 7.5-8.5% compared with 6-8% growth stated previously.
The company has been gaining from the e-commerce business, driven by increased investments in digital marketing, improved shopping experience, same-day and next-day delivery facilities, personalization of products, and a broader assortment, including the latest product categories. Its express delivery program also bodes well.
Management has been 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 fourth-quarter performance.
However, it has been reeling under sluggishness in franchisee revenues due to reduced franchise locations. It has also been witnessing lower customer payment activity due to reduced government stimulus. Although fourth-quarter 2021 customer lease payment activity is likely to have been above the pre-pandemic level, it is anticipated to be lower than fourth-quarter 2020.
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 #4 (Sell) and an Earnings ESP of +5.41%.
Stocks With Favorable Combination
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 this season:
Gildan Activewear (GIL - Free Report) currently has an Earnings ESP of +9.57% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports fourth-quarter 2021. The Zacks Consensus Estimate for quarterly earnings moved 3.6% to 58 cents per share, suggesting 28.9% growth from the year-ago quarter’s reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gildan Activewear’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $731 million, which suggests a rise of 5.9% from the figure reported in the prior-year quarter. GIL has delivered an earnings beat of 85%, on average, in the trailing four quarters.
PVH Corp (PVH - Free Report) has an Earnings ESP of +0.20% and a Zacks Rank of 3 at present. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2021 results. The Zacks Consensus Estimate for quarterly earnings has been unchanged at $1.98 per share in the past 30 days, suggesting a surge of 621.1% from the year-ago quarter’s reported number.
PVH Corp’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.39 billion, which suggests a rise of 14.4% from the figure reported in the prior-year quarter. PVH has delivered an earnings beat of 72.3%, on average, in the trailing four quarters.
Vail Resorts (MTN - Free Report) currently has an Earnings ESP of +5.48% and a Zacks Rank #3. MTN is anticipated to register top-line growth when it reports third-quarter fiscal 2021 results. The Zacks Consensus Estimate for the quarterly revenues is pegged at $195.1 million, indicating an improvement of 48.1% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Vail Resorts' bottom line has improved significantly in the past 30 days to a loss of $3.66 per share. However, the estimate suggests a wider loss from the loss per share of $3.63 reported in the year-ago quarter. MTN has delivered an earnings beat of 17.3%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.