Rent-A-Center (RCII) Q2 Earnings & Sales Miss; Stock Down
Zacks Investment Research | Jul 28, 2016 06:18AM ET
After delivering positive earnings surprises for five straight quarters, Rent-A-Center, Inc. (NASDAQ:RCII) succumbed to a miss in the second quarter of 2016, which also marked the company’s fourth consecutive sales miss. Moreover, both top and bottom lines declined year over year. The dismal quarterly results caused shares of the company to plunge 14.4% in the after-market trading session yesterday.
The rent-to-own operator’s quarterly adjusted earnings of 41 cents a share fell 18% short of the Zacks Consensus Estimate and the year-ago figure of 50 cents. On a GAAP basis, the company reported earnings of 19 cents per share compared with 43 cents delivered in the year-ago quarter.
Consolidated total revenue tumbled 8.1% to $749.6 million in the reported quarter, owing to a decline witnessed across the Core U.S., Acceptance Now and Mexico segments, somewhat compensated by enhanced revenue from the Franchising segment. Revenues also came in below the Zacks Consensus Estimate of $786.2 million.
Comparable-store sales (comps) for the quarter dropped 4.9%, reflecting respective year-over-year declines of 6.7% and 1.5% in the Core U.S. and Acceptance Now segments, partly offset by a 13% jump noted at the Mexico segment. Notably, however, comps had improved 1.4%, 31.6% and 12% across the Core U.S., Acceptance Now and Mexico segments, respectively, in the year-ago period.
RENT-A-CENTER Price, Consensus and EPS Surprise/h3
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