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The Zacks Consensus Estimate for third-quarter earnings is pegged at 16 cents per share, which indicates a sharp decline of 80.7% from the year-ago quarter’s reported figure. However, the consensus mark has been unchanged in the past 30 days. The consensus mark for revenues is pegged at $571.4 million, indicating growth of 26.4% from the figure reported in the year-ago quarter.
We expect the company’s third-quarter total revenues to increase 28% year over year to $578.2 million and the bottom line to decline 76.1% to 20 cents per share.
In the last reported quarter, the company delivered an earnings surprise of 19.7%. It delivered an earnings surprise of 41.6%, on average, in the trailing four quarters.
Aaron’s has been reeling under continued inflation and other macroeconomic factors, including adverse customer demand, lease portfolio size, lease renewal rates and a potential decline in lease merchandise write-offs. Also, lower-than-expected lease renewal rates are likely to have acted as deterrents.
The company has been witnessing weak customer demand and lower payment activity in the Aaron’s business, stemming from rising inflation. This, along with reduced lease, drab retail sales and a decline in early purchase options, is likely to have been concerning.
However, the company has been witnessing strength in its e-commerce platform, driven by increased investments in digital marketing, improved shopping experience, same-day and next-day delivery services, the personalization of products, and a broader assortment, including the latest product categories. AAN’s express delivery program also bodes well.
The sturdy performance in GenNext stores is expected to have been a key growth driver. Aaron’s newly acquired appliance and electronics retailer, BrandsMart, is likely to have strengthened its market position and expanded the customer base. The deal is expected to have aided Aaron’s top line in the third quarter.
Zacks Model
Our proven model doesn’t conclusively predict an earnings beat for Aaron's this season. 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 #5 (Strong Sell) and an Earnings ESP of +7.37%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
BJ's Wholesale (BJ - Free Report) has an Earnings ESP of +0.79% and currently sports a Zacks Rank #1. BJ is likely to register top-line growth when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.64 billion, suggesting 8.8% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s fiscal third-quarter earnings is pegged at 79 cents, suggesting a 13.2% decline from 91 cents reported in the year-ago quarter. The consensus mark has moved down by a penny in the past 30 days.
Charter Communications (CHTR - Free Report) currently has an Earnings ESP of +0.63% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports third-quarter 2022 numbers. The Zacks Consensus Estimate for CHTR’s quarterly revenues is pegged at $13.89 billion, which suggests growth of 5.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Charter Communications' quarterly earnings per share has moved up 0.4% in the past 30 days. However, the consensus estimate for earnings suggests 23.1% growth from the year-ago reported number. CHTR has delivered an earnings beat of 19.4%, on average, in the trailing four quarters.
Ralph Lauren (RL - Free Report) currently has an Earnings ESP of +0.08% and a Zacks Rank #3. RL is anticipated to register top-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.6 billion, indicating an improvement of 3.7% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for Ralph Lauren’s earnings of $2.07 per share has moved down 1.4% in the past 30 days. The consensus estimate suggests a decline of 21% from 99 cents reported in the year-ago quarter. RL has delivered an earnings beat of 34.9%, on average, in the trailing four quarters.
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Factors Likely to Decide Aaron's (AAN) Fate in Q3 Earnings
The Aaron's Company, Inc. (AAN - Free Report) is scheduled to report third-quarter 2022 results on Oct 24.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 16 cents per share, which indicates a sharp decline of 80.7% from the year-ago quarter’s reported figure. However, the consensus mark has been unchanged in the past 30 days. The consensus mark for revenues is pegged at $571.4 million, indicating growth of 26.4% from the figure reported in the year-ago quarter.
We expect the company’s third-quarter total revenues to increase 28% year over year to $578.2 million and the bottom line to decline 76.1% to 20 cents per share.
In the last reported quarter, the company delivered an earnings surprise of 19.7%. It delivered an earnings surprise of 41.6%, 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 reeling under continued inflation and other macroeconomic factors, including adverse customer demand, lease portfolio size, lease renewal rates and a potential decline in lease merchandise write-offs. Also, lower-than-expected lease renewal rates are likely to have acted as deterrents.
The company has been witnessing weak customer demand and lower payment activity in the Aaron’s business, stemming from rising inflation. This, along with reduced lease, drab retail sales and a decline in early purchase options, is likely to have been concerning.
However, the company has been witnessing strength in its e-commerce platform, driven by increased investments in digital marketing, improved shopping experience, same-day and next-day delivery services, the personalization of products, and a broader assortment, including the latest product categories. AAN’s express delivery program also bodes well.
The sturdy performance in GenNext stores is expected to have been a key growth driver. Aaron’s newly acquired appliance and electronics retailer, BrandsMart, is likely to have strengthened its market position and expanded the customer base. The deal is expected to have aided Aaron’s top line in the third quarter.
Zacks Model
Our proven model doesn’t conclusively predict an earnings beat for Aaron's this season. 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 #5 (Strong Sell) and an Earnings ESP of +7.37%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
BJ's Wholesale (BJ - Free Report) has an Earnings ESP of +0.79% and currently sports a Zacks Rank #1. BJ is likely to register top-line growth when it reports third-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $4.64 billion, suggesting 8.8% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for BJ's Wholesale’s fiscal third-quarter earnings is pegged at 79 cents, suggesting a 13.2% decline from 91 cents reported in the year-ago quarter. The consensus mark has moved down by a penny in the past 30 days.
Charter Communications (CHTR - Free Report) currently has an Earnings ESP of +0.63% and a Zacks Rank of 3. The company is expected to register top and bottom-line growth when it reports third-quarter 2022 numbers. The Zacks Consensus Estimate for CHTR’s quarterly revenues is pegged at $13.89 billion, which suggests growth of 5.6% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Charter Communications' quarterly earnings per share has moved up 0.4% in the past 30 days. However, the consensus estimate for earnings suggests 23.1% growth from the year-ago reported number. CHTR has delivered an earnings beat of 19.4%, on average, in the trailing four quarters.
Ralph Lauren (RL - Free Report) currently has an Earnings ESP of +0.08% and a Zacks Rank #3. RL is anticipated to register top-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.6 billion, indicating an improvement of 3.7% from the figure reported in the prior-year quarter.
However, the Zacks Consensus Estimate for Ralph Lauren’s earnings of $2.07 per share has moved down 1.4% in the past 30 days. The consensus estimate suggests a decline of 21% from 99 cents reported in the year-ago quarter. RL has delivered an earnings beat of 34.9%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.