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Things You Need to Know Before Aaron's (AAN) Q1 Earnings

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The Aaron's Company, Inc. (AAN - Free Report) is scheduled to report first-quarter 2022 results on Apr 26. 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 first-quarter earnings is pegged at 68 cents per share, which indicates a decline of 45.2% from the year-ago quarter’s reported figure. The consensus mark moved down 2.9% in the past seven days. The consensus mark for revenues is pegged at $472.7 million, indicating a decline of 1.7% from the figure reported in the year-ago quarter.

In the last reported quarter, the company delivered an earnings surprise of 62.2%. It delivered an earnings surprise of 76.1%, on average, in the trailing four quarters.

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

Factors to Note

Aaron’s has been benefiting from a robust lease portfolio and a solid e-commerce business. Increased investments in digital marketing, improved shopping experience, same-day and next-day delivery facilities, personalization of products, a broader product assortment, and its express delivery program remain key growth drivers. These upsides are likely to have aided the top line in the to-be-reported quarter.

Management has been on track with its GenNext real estate strategy, which has been performing well. A higher number of GenNext stores along with significant cost synergies related to the BrandsMart buyout are expected to have contributed to its first-quarter performance.

However, it has been reeling under sluggishness in franchisee revenues due to reduced franchise locations. Also, lower customer payment activity due to reduced government stimulus, along with higher wages for in-store team members and elevated shipping costs, is likely to have been concerning.

Zacks Model

Our proven model predicts 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 chances of an earnings beat. 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 +7.99%.

Other Stocks With Favorable Combination

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

Gildan Activewear (GIL - Free Report) has an Earnings ESP of +10.20% and it currently sports a Zacks Rank of 1. The company is likely to register an increase in the bottom line when it reports first-quarter 2022. The Zacks Consensus Estimate for quarterly earnings moved up by a penny in the past 30 days to 49 cents per share, suggesting 2.1% 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 $652.2 million, which suggests a rise of 10.6% from the figure reported in the prior-year quarter. GIL has delivered an earnings beat of 66.6%, on average, in the trailing four quarters.

Pool Corporation (POOL - Free Report) has an Earnings ESP of +2.53% and a Zacks Rank of 2 at present. The company is likely to register an increase in the bottom line when it reports first-quarter 2022. The Zacks Consensus Estimate for quarterly earnings moved up 0.7% to $3.06 per share in the past 30 days, suggesting an increase of 26.5% from the year-ago quarter’s reported number.

Pool’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.25 billion, which suggests a rise of 18% from the figure reported in the prior-year quarter. POOL has delivered an earnings beat of 38.4%, on average, in the trailing four quarters.

Charter Communications (CHTR - Free Report) currently has an Earnings ESP of +0.60% and a Zacks Rank #3. CHTR is anticipated to register top-line growth when it reports first-quarter 2022 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $13.2 billion, indicating an improvement of 5.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for Charter Communications’ bottom line has moved down 0.9% in the past 30 days to $6.52 per share. However, the metric reflects growth of 58.6% from $4.11 reported in the year-ago quarter. CHTR has delivered an earnings beat of 12%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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