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Factors That Hold Key to Rent-A-Center (RCII) Q2 Earnings
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Rent-A-Center, Inc. , which accepted the buyout offer of Vintage Capital, is slated to release second-quarter 2018 results on July 30, post market close. In the last reported quarter, the company’s bottom line lagged the Zacks Consensus Estimate by a huge margin. The Zacks Consensus Estimate for the quarter-to-be-reported is pegged at 23 cents. Notably, the consensus estimate has remained stable over the past 30 days. Moreover, the Zacks Consensus Estimate for revenues is $642.3 million, down roughly 5% from the year-ago period.
Rent-A-Center, Inc. Price, Consensus and EPS Surprise
Rent-A-Center is making efforts to enhance its omni-channel platform so that customers can experience a seamless approach across channels, markets, retailers, products and brands. The company is increasing e-commerce offerings and mobile applications and leveraging cloud-based point-of-sale platform to manage orders more efficiently, lower losses and cut operating costs.
Notably, comparable-store sale at the Acceptance Now segment improved 3.3% during the first quarter of 2018 courtesy its initiatives to enhance customers shopping experience. Management also intimated that same-store sales rose 2.3% and 2.5% in April and May, respectively.
The company is also optimizing product mix, upgrading workforce, concentrating on lowering delinquency rates and rationalizing existing stores as well as contemplating on new ones. This rent-to-own operator stated that same-store sales in the Core U.S. segment inched up 0.3% in the first quarter. Management also intimated that same-store sales rose 1.6%, 3.3% and 3.6% in March, April and May, respectively.
For the second quarter of 2018, Rent-A-Center had earlier projected consolidated revenues to come in the range of $640-$660 million. While Core U.S. revenues are expected to range from $450-$460 million, revenues of Acceptance Now are likely to come in a band of $170-$180 million. Management guided adjusted EBITDA to be roughly $40-$50 million and adjusted earnings to be about 20-30 cents per share. Free cash flow is likely to be $30-$40 million.
What Does the Zacks Model Unveil?
Our proven model does not conclusively show that Rent-A-Center is likely to beat estimates this quarter. A stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
While Rent-A-Center carries a Zacks Rank #2, it has an Earnings ESP of 0.00% which makes surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Hanesbrand (HBI - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank #2.
Red Rock Resorts (RRR - Free Report) has an Earnings ESP of +4% and a Zacks Rank of #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Factors That Hold Key to Rent-A-Center (RCII) Q2 Earnings
Rent-A-Center, Inc. , which accepted the buyout offer of Vintage Capital, is slated to release second-quarter 2018 results on July 30, post market close. In the last reported quarter, the company’s bottom line lagged the Zacks Consensus Estimate by a huge margin. The Zacks Consensus Estimate for the quarter-to-be-reported is pegged at 23 cents. Notably, the consensus estimate has remained stable over the past 30 days. Moreover, the Zacks Consensus Estimate for revenues is $642.3 million, down roughly 5% from the year-ago period.
Rent-A-Center, Inc. Price, Consensus and EPS Surprise
Rent-A-Center, Inc. Price, Consensus and EPS Surprise | Rent-A-Center, Inc. Quote
Factors at Play
Rent-A-Center is making efforts to enhance its omni-channel platform so that customers can experience a seamless approach across channels, markets, retailers, products and brands. The company is increasing e-commerce offerings and mobile applications and leveraging cloud-based point-of-sale platform to manage orders more efficiently, lower losses and cut operating costs.
Notably, comparable-store sale at the Acceptance Now segment improved 3.3% during the first quarter of 2018 courtesy its initiatives to enhance customers shopping experience. Management also intimated that same-store sales rose 2.3% and 2.5% in April and May, respectively.
The company is also optimizing product mix, upgrading workforce, concentrating on lowering delinquency rates and rationalizing existing stores as well as contemplating on new ones. This rent-to-own operator stated that same-store sales in the Core U.S. segment inched up 0.3% in the first quarter. Management also intimated that same-store sales rose 1.6%, 3.3% and 3.6% in March, April and May, respectively.
For the second quarter of 2018, Rent-A-Center had earlier projected consolidated revenues to come in the range of $640-$660 million. While Core U.S. revenues are expected to range from $450-$460 million, revenues of Acceptance Now are likely to come in a band of $170-$180 million. Management guided adjusted EBITDA to be roughly $40-$50 million and adjusted earnings to be about 20-30 cents per share. Free cash flow is likely to be $30-$40 million.
What Does the Zacks Model Unveil?
Our proven model does not conclusively show that Rent-A-Center is likely to beat estimates this quarter. A stock needs to have both — a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP — for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
While Rent-A-Center carries a Zacks Rank #2, it has an Earnings ESP of 0.00% which makes surprise prediction difficult.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Weight Watchers International (WTW - Free Report) has an Earnings ESP of +2.22% and a Zacks Rank of #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hanesbrand (HBI - Free Report) has an Earnings ESP of +2.17% and a Zacks Rank #2.
Red Rock Resorts (RRR - Free Report) has an Earnings ESP of +4% and a Zacks Rank of #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>