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The Zacks Consensus Estimate for fourth-quarter earnings is pegged at a loss of 2 cents per share, which indicates a sharp decline of 103.3% 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 $584.5 million, indicating growth of 31.4% from the figure reported in the year-ago quarter.
For 2022, the Zacks Consensus Estimate is pegged at $2.2 billion, suggesting 21.6% growth from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for 2022 earnings indicates a 47.2% year-over-year plunge to $1.98. We expect the company’s 2022 total revenues to increase 21.5% year over year to $2,242 million and the bottom line to decline 48.7% to $1.92 per share.
In the last reported quarter, the company delivered an earnings surprise of 93.8%. It delivered an earnings surprise of 50.9%, on average, in the trailing four quarters.
Aaron’s has been gaining from solid customer demand, strategic investments in centralized lease decisioning, robust e-commerce business, strength in the GenNext store program and the BrandsMart buyout. The company has been on track with its efforts to enhance customers' in-store and digital experiences.
It has been witnessing strength in its e-commerce platform, driven by enhanced digital payment and servicing platforms. Also, the rising website traffic and a higher conversion rate are likely to have acted as upsides. Some other notable efforts include 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.
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 fourth quarter.
Consequently, management, in its last earnings report, raised its 2022 guidance. The company anticipated revenues of $2.23-$2.27 billion, up from the earlier mentioned $2.19-$2.27 billion. Adjusted EBITDA was predicted to be $160-$170 million compared with the prior stated $150-$170 million. It also envisioned adjusted earnings of $1.90-$2.05 compared with the prior stated $1.75-$2.15.
In the Aaron’s Business, revenues were expected to be $1.68-$1.71 billion, up from the previously stated $1.65-$1.71 billion. Adjusted EBITDA was forecast to be $190-$195 million compared with the prior mentioned $180-$195 million. Same-store revenues were predicted to decline 7-6%, up from the earlier stated 8-6% decline. In BrandsMart, revenues were anticipated to be $550-$565 million, up from the prior mentioned $545-$565 million. Adjusted EBITDA was expected to be $20-$25 million.
However, the company has been witnessing dismal margins and a higher provision for lease merchandise write-offs at the Aaron's Business. Also, lower lease revenues and reduced lease portfolio size, the lower exercise of early purchase options, smaller same-store lease portfolio size and drab retail sales are likely to have acted as deterrents.
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 #3 and an Earnings ESP of 0.00%.
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:
NIKE (NKE - Free Report) currently has an Earnings ESP of +7.19% and a Zacks Rank of 3. NKE is likely to register top-line growth when it reports third-quarter fiscal 2023 earnings. The Zacks Consensus Estimate for quarterly revenues is pegged at $11.4 billion, suggesting 4.6% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for NIKE’s earnings for the fiscal third quarter is pegged at 50 cents, suggesting a 42.5% decline from 87 cents reported in the year-ago quarter. The consensus mark has moved down by a penny in the past seven days. NKE delivered an earnings beat of 15.8%, on average, in the trailing four quarters.
PVH Corp (PVH - Free Report) currently has an Earnings ESP of +0.71% and a Zacks Rank of 3. PVH is expected to register top and bottom-line declines when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for PVH’s quarterly revenues is pegged at $2.34 billion, suggesting a decline of 3.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for PVH’s quarterly earnings has moved up by a penny in the past 30 days. The consensus estimate for earnings suggests a decline of 42.3% from the year-ago quarter’s reported number. PVH delivered an earnings beat of 22.9%, on average, in the trailing four quarters.
Splunk has an Earnings ESP of +0.39% and carries a Zacks Rank #2. SPLK is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for Splunk quarterly revenues is pegged at $1.1 billion, suggesting a decline of 19% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Splunk quarterly earnings has moved up by a penny in the past 30 days. The consensus estimate for earnings suggests a decline of 68.2% from the year-ago quarter’s reported number. SPLK delivered an earnings beat of 222.03%, on average, in the trailing four quarters.
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Things You Need to Know Ahead of Aaron's (AAN) Q4 Earnings
The Aaron's Company, Inc. (AAN - Free Report) is scheduled to report fourth-quarter 2022 results on Mar 1.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at a loss of 2 cents per share, which indicates a sharp decline of 103.3% 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 $584.5 million, indicating growth of 31.4% from the figure reported in the year-ago quarter.
For 2022, the Zacks Consensus Estimate is pegged at $2.2 billion, suggesting 21.6% growth from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for 2022 earnings indicates a 47.2% year-over-year plunge to $1.98. We expect the company’s 2022 total revenues to increase 21.5% year over year to $2,242 million and the bottom line to decline 48.7% to $1.92 per share.
In the last reported quarter, the company delivered an earnings surprise of 93.8%. It delivered an earnings surprise of 50.9%, 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 gaining from solid customer demand, strategic investments in centralized lease decisioning, robust e-commerce business, strength in the GenNext store program and the BrandsMart buyout. The company has been on track with its efforts to enhance customers' in-store and digital experiences.
It has been witnessing strength in its e-commerce platform, driven by enhanced digital payment and servicing platforms. Also, the rising website traffic and a higher conversion rate are likely to have acted as upsides. Some other notable efforts include 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.
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 fourth quarter.
Consequently, management, in its last earnings report, raised its 2022 guidance. The company anticipated revenues of $2.23-$2.27 billion, up from the earlier mentioned $2.19-$2.27 billion. Adjusted EBITDA was predicted to be $160-$170 million compared with the prior stated $150-$170 million. It also envisioned adjusted earnings of $1.90-$2.05 compared with the prior stated $1.75-$2.15.
In the Aaron’s Business, revenues were expected to be $1.68-$1.71 billion, up from the previously stated $1.65-$1.71 billion. Adjusted EBITDA was forecast to be $190-$195 million compared with the prior mentioned $180-$195 million. Same-store revenues were predicted to decline 7-6%, up from the earlier stated 8-6% decline. In BrandsMart, revenues were anticipated to be $550-$565 million, up from the prior mentioned $545-$565 million. Adjusted EBITDA was expected to be $20-$25 million.
However, the company has been witnessing dismal margins and a higher provision for lease merchandise write-offs at the Aaron's Business. Also, lower lease revenues and reduced lease portfolio size, the lower exercise of early purchase options, smaller same-store lease portfolio size and drab retail sales are likely to have acted as deterrents.
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 #3 and an Earnings ESP of 0.00%.
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:
NIKE (NKE - Free Report) currently has an Earnings ESP of +7.19% and a Zacks Rank of 3. NKE is likely to register top-line growth when it reports third-quarter fiscal 2023 earnings. The Zacks Consensus Estimate for quarterly revenues is pegged at $11.4 billion, suggesting 4.6% 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 NIKE’s earnings for the fiscal third quarter is pegged at 50 cents, suggesting a 42.5% decline from 87 cents reported in the year-ago quarter. The consensus mark has moved down by a penny in the past seven days. NKE delivered an earnings beat of 15.8%, on average, in the trailing four quarters.
PVH Corp (PVH - Free Report) currently has an Earnings ESP of +0.71% and a Zacks Rank of 3. PVH is expected to register top and bottom-line declines when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for PVH’s quarterly revenues is pegged at $2.34 billion, suggesting a decline of 3.8% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for PVH’s quarterly earnings has moved up by a penny in the past 30 days. The consensus estimate for earnings suggests a decline of 42.3% from the year-ago quarter’s reported number. PVH delivered an earnings beat of 22.9%, on average, in the trailing four quarters.
Splunk has an Earnings ESP of +0.39% and carries a Zacks Rank #2. SPLK is expected to register top and bottom-line growth when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for Splunk quarterly revenues is pegged at $1.1 billion, suggesting a decline of 19% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for Splunk quarterly earnings has moved up by a penny in the past 30 days. The consensus estimate for earnings suggests a decline of 68.2% from the year-ago quarter’s reported number. SPLK delivered an earnings beat of 222.03%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.