Rent-A-Center (NASDAQ:RCII) Releases Second Quarter Revenue Forecast


Rent-A-Center (NASDAQ:RCII – Get Rating) released an update to its second-quarter earnings guidance on Wednesday morning. The company provided EPS guidance of $0.95-1.10 for the period, compared to the consensus EPS estimate of $1.30. The company released a revenue forecast of $1.045 billion to $1.075 billion, compared to the consensus revenue estimate of $1.13 billion. Rent-A-Center also updated its FY22 guidance to $4.50-5.00 EPS.

Shares of NASDAQ:RCII traded down $0.83 during Friday’s trading, hitting $26.45. 1,820,039 shares of the company were traded, against an average volume of 922,141. The company has a debt ratio of 3.06, a current ratio of 3.36 and a quick ratio of 0.74. Rent-A-Center has a 52-week minimum of $22.70 and a 52-week maximum of $67.76. The company’s 50-day simple moving average is $25.88 and its 200-day simple moving average is $38.82. The company has a market capitalization of $1.56 billion, a price/earnings ratio of 20.66 and a beta of 1.55.

Rent-A-Center (NASDAQ:RCII – Get Rating) last reported results on Wednesday, May 4. The company reported earnings per share (EPS) of $0.74 for the quarter, beating the consensus estimate of $0.71 by $0.03. The company posted revenue of $1.13 billion in the quarter, versus $1.11 billion expected by analysts. Rent-A-Center had a return on equity of 45.03% and a net margin of 1.87%. The company’s revenue increased 9.4% year over year. In the same quarter last year, the company posted earnings per share of $1.32. On average, sell-side analysts expect Rent-A-Center to post EPS of 4.72 for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Friday, April 22. Shareholders of record on Tuesday, April 5 received a dividend of $0.34 per share. This represents an annualized dividend of $1.36 and a yield of 5.14%. The ex-dividend date was Monday, April 4. Rent-A-Center’s dividend payout ratio is currently 106.25%.

Several equity analysts weighed in on RCII shares. KeyCorp cut its price target on Rent-A-Center from $68.00 to $44.00 and set an overweight rating for the company in a Friday, Feb. 25 report. Zacks Investment Research has upgraded Rent-A-Center from a hold rating to a strong sell rating and has set a price target of $24.00 for the company. in a Monday, March 7 report. StockNews.com began covering Rent-A-Center in a report on Thursday, March 31. They issued a holding note for the company. Finally, Raymond James downgraded Rent-A-Center from a Strong Buy rating to an Outperform rating and lowered its price target for the stock from $65.00 to $40.00 in a research report Friday, February 25. One financial analyst has assigned the stock a sell rating, one has assigned a hold rating and four have assigned the stock a buy rating. According to MarketBeat.com, the company currently has a consensus buy rating and a consensus target price of $48.25.

In other Rent-A-Center news, CEO Mitchell E. Fadel purchased 40,000 shares of the company in a transaction that took place on Tuesday, March 1. The shares were purchased at an average cost of $27.08 per share, with a total value of $1,083,200.00. The transaction was disclosed in a document filed with the SEC, accessible via this hyperlink. Company insiders own 1.50% of the company’s shares.

Institutional investors have recently changed their positions in the company. Janus Henderson Group PLC bought a new position in Rent-A-Center in Q3 worth $293,000. Virtu Financial LLC increased its stake in Rent-A-Center by 54.2% in the fourth quarter. Virtu Financial LLC now owns 5,700 shares of the company valued at $274,000 after purchasing an additional 2,003 shares in the last quarter. LPL Financial LLC increased its stake in Rent-A-Center by 55.4% in the fourth quarter. LPL Financial LLC now owns 15,307 shares of the company valued at $735,000 after purchasing an additional 5,460 shares in the last quarter. Advisors Asset Management Inc. increased its stake in Rent-A-Center by 43.0% in the fourth quarter. Advisors Asset Management Inc. now owns 41,120 shares of the company valued at $1,975,000 after purchasing an additional 12,366 shares in the last quarter. Finally, Deutsche Bank AG increased its stake in Rent-A-Center by 3.8% in the fourth quarter. Deutsche Bank AG now owns 47,641 shares of the company valued at $2,288,000 after buying 1,748 additional shares in the last quarter. 81.66% of the shares are currently held by institutional investors.

Rent-A-Center Company Profile (Get a rating)

Rent-A-Center, Inc., together with its subsidiaries, rents household durable goods to customers on a lease-to-own basis. The Company operates in four segments: Rent-A-Center Business, Acima, Mexico and Franchising. It offers furniture and accessories, household appliances, consumer electronics, computers, tablets and smartphones, tools, tires, handbags and other accessories under lease- purchase.

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Earnings history and estimates for Rent-A-Center (NASDAQ:RCII)



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