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Rent-A-Center, Inc.

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Rent-A-Center disappointed investors with its third-quarter 2015 performance. Although the rent-to-own operator continued with its positive earnings surprise streak for the third successive quarter, the bottom line declined 6% year over year. Total revenue did increase but fell short of the Zacks Consensus Estimate. As a result, management lowered its earnings forecast for the fourth quarter and full-year 2015. The dismal performance and a downbeat outlook triggered a downtrend in the Zacks Consensus Estimate. Nevertheless, the company’s Acceptance Now is gaining traction. Moreover, management is focusing on a new labor model and supply chain initiative that it believes to generate substantial cost savings in 2016. The company is also concentrating on value-based pricing strategy.

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