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Things You Need to Know Before Aaron's (AAN) Q2 Earnings
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The Aaron's Company, Inc. (AAN - Free Report) is scheduled to report second-quarter 2023 results on Jul 31. This lease-to-own provider is likely to have witnessed declines in the top and the bottom lines when it reports second-quarter results.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 18 cents per share, which indicates a sharp decline of 77.2% 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 $540.9 million, indicating a decline of 11.4% from the figure reported in the year-ago quarter.
We expect the company’s second-quarter total revenues to decrease 12.6% year over year to $533.5 million and the bottom line to decline 78.1% to 17 cents per share.
In the last reported quarter, the company posted a negative earnings surprise of 135.7%. It delivered an earnings beat of 199.8%, on average, in the trailing four quarters.
Aaron’s has been gaining from reduced write-offs and the fact that fewer customers are opting for early purchase options. Also, cost-reduction initiatives, solid online show and strength in the GenNext program bode well.
The company has been witnessing strength in its e-commerce platform, driven by increased website traffic and a higher conversion rate. Some other notable efforts include 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. Its express delivery program also bodes well.
The sturdy performance in GenNext stores is expected to have aided the company’s top line in the second quarter. Aaron’s newly acquired appliance and electronics retailer, BrandsMart, is likely to have strengthened its market position and expanded its customer base in the quarter under review.
However, AAN has been witnessing high inflation and other challenging economic conditions that continue to impact its customers. Both its segments should have been impacted by continued softness in customer demand, particularly in its core product categories, including appliances, furniture and electronics, in the first half of the year.
The company has been witnessing sluggishness in the Aaron’s Business segment due to smaller average lease portfolio size and lower lease renewal rate, coupled with fewer exercises of early purchase options and weak retail sales. Also, delayed deliveries and lower lease revenues stemming from lower customer traffic 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 With Favorable Combinations
Here are some companies in the Zacks Consumer Discretionary sector that, too, have the right combination of elements to post an earnings beat on their respective quarters to be reported.
Marriott International (MAR - Free Report) currently has an Earnings ESP of +8.44% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports second-quarter 2023 results. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MAR’s quarterly revenues is pegged at $6.1 billion, suggesting 13.3% growth from the figure reported in the prior-year quarter. The consensus mark for Marriott’s second-quarter earnings is pegged at $2.19 per share, suggesting year-over-year growth of 21.7%. The consensus mark has been unchanged in the past 30 days. MAR has a trailing four-quarter earnings surprise of 8%, on average.
Boyd Gaming (BYD - Free Report) currently has an Earnings ESP of +2.92% and a Zacks Rank of 3. BYD is likely to register top and bottom-line growth when it reports second-quarter 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $890.7 million, suggesting 0.4% growth from the figure reported in the prior-year quarter.
The consensus mark for Boyd Gaming’s second-quarter earnings is pegged at $1.56 per share, suggesting 5.4% growth from earnings of $1.48 per share reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days. BYD has a trailing four-quarter earnings surprise of 13.7%, on average.
Hyatt Hotels (H - Free Report) currently has an Earnings ESP of +8.14% and a Zacks Rank #3. H is likely to register top and bottom-line growth when it reports second-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.65 billion, suggesting 11.3% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Hyatt Hotels’ second-quarter earnings is pegged at 83 cents, suggesting an 80.4% improvement from the year-ago quarter’s actual. The consensus mark has moved up by a penny in the past 30 days.
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Things You Need to Know Before Aaron's (AAN) Q2 Earnings
The Aaron's Company, Inc. (AAN - Free Report) is scheduled to report second-quarter 2023 results on Jul 31. This lease-to-own provider is likely to have witnessed declines in the top and the bottom lines when it reports second-quarter results.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 18 cents per share, which indicates a sharp decline of 77.2% 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 $540.9 million, indicating a decline of 11.4% from the figure reported in the year-ago quarter.
We expect the company’s second-quarter total revenues to decrease 12.6% year over year to $533.5 million and the bottom line to decline 78.1% to 17 cents per share.
In the last reported quarter, the company posted a negative earnings surprise of 135.7%. It delivered an earnings beat of 199.8%, 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 gaining from reduced write-offs and the fact that fewer customers are opting for early purchase options. Also, cost-reduction initiatives, solid online show and strength in the GenNext program bode well.
The company has been witnessing strength in its e-commerce platform, driven by increased website traffic and a higher conversion rate. Some other notable efforts include 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. Its express delivery program also bodes well.
The sturdy performance in GenNext stores is expected to have aided the company’s top line in the second quarter. Aaron’s newly acquired appliance and electronics retailer, BrandsMart, is likely to have strengthened its market position and expanded its customer base in the quarter under review.
However, AAN has been witnessing high inflation and other challenging economic conditions that continue to impact its customers. Both its segments should have been impacted by continued softness in customer demand, particularly in its core product categories, including appliances, furniture and electronics, in the first half of the year.
The company has been witnessing sluggishness in the Aaron’s Business segment due to smaller average lease portfolio size and lower lease renewal rate, coupled with fewer exercises of early purchase options and weak retail sales. Also, delayed deliveries and lower lease revenues stemming from lower customer traffic 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 With Favorable Combinations
Here are some companies in the Zacks Consumer Discretionary sector that, too, have the right combination of elements to post an earnings beat on their respective quarters to be reported.
Marriott International (MAR - Free Report) currently has an Earnings ESP of +8.44% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports second-quarter 2023 results. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MAR’s quarterly revenues is pegged at $6.1 billion, suggesting 13.3% growth from the figure reported in the prior-year quarter. The consensus mark for Marriott’s second-quarter earnings is pegged at $2.19 per share, suggesting year-over-year growth of 21.7%. The consensus mark has been unchanged in the past 30 days. MAR has a trailing four-quarter earnings surprise of 8%, on average.
Boyd Gaming (BYD - Free Report) currently has an Earnings ESP of +2.92% and a Zacks Rank of 3. BYD is likely to register top and bottom-line growth when it reports second-quarter 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $890.7 million, suggesting 0.4% growth from the figure reported in the prior-year quarter.
The consensus mark for Boyd Gaming’s second-quarter earnings is pegged at $1.56 per share, suggesting 5.4% growth from earnings of $1.48 per share reported in the year-ago quarter. The consensus mark has been unchanged in the past 30 days. BYD has a trailing four-quarter earnings surprise of 13.7%, on average.
Hyatt Hotels (H - Free Report) currently has an Earnings ESP of +8.14% and a Zacks Rank #3. H is likely to register top and bottom-line growth when it reports second-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.65 billion, suggesting 11.3% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Hyatt Hotels’ second-quarter earnings is pegged at 83 cents, suggesting an 80.4% improvement from the year-ago quarter’s actual. The consensus mark has moved up by a penny in the past 30 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.