$665.88 Million in Sales Expected for Rent-A-Center Inc. (RCII) This Quarter
Brokerages expect that Rent-A-Center Inc. (NASDAQ:RCII) will post sales of $665.88 million for the current quarter, Zacks reports. Six analysts have provided estimates for Rent-A-Center’s earnings, with estimates ranging from $620.94 million to $682.90 million. Rent-A-Center posted sales of $749.62 million during the same quarter last year, which suggests a negative year over year growth rate of 11.2%. The firm is scheduled to announce its next quarterly earnings results on Wednesday, July 26th.
According to Zacks, analysts expect that Rent-A-Center will report full year sales of $665.88 million for the current financial year, with estimates ranging from $2.65 billion to $2.78 billion. For the next fiscal year, analysts anticipate that the firm will report sales of $2.71 billion per share, with estimates ranging from $2.61 billion to $2.88 billion. Zacks’ sales calculations are an average based on a survey of research firms that cover Rent-A-Center.
Rent-A-Center (NASDAQ:RCII) last announced its earnings results on Monday, May 1st. The company reported $0.04 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.02) by $0.06. The firm had revenue of $742 million during the quarter, compared to analyst estimates of $733.43 million. Rent-A-Center had a negative net margin of 4.77% and a negative return on equity of 30.44%. Rent-A-Center’s revenue was down 11.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.48 EPS.
RCII has been the subject of a number of research analyst reports. Jefferies Group LLC cut their price target on Rent-A-Center from $12.00 to $9.00 and set a “hold” rating for the company in a report on Wednesday, May 3rd. Raymond James Financial, Inc. raised Rent-A-Center from a “market perform” rating to a “strong-buy” rating and set a $15.00 price target for the company in a report on Wednesday, April 12th. Stephens set a $9.00 price target on Rent-A-Center and gave the company a “sell” rating in a report on Thursday, April 6th. Janney Montgomery Scott initiated coverage on Rent-A-Center in a report on Thursday, April 6th. They issued a “buy” rating and a $12.00 price target for the company. Finally, Loop Capital cut Rent-A-Center from a “hold” rating to a “sell” rating and set a $8.00 price target for the company. in a report on Wednesday, June 7th. Three investment analysts have rated the stock with a sell rating, three have assigned a hold rating, two have issued a buy rating and one has given a strong buy rating to the company. The company currently has a consensus rating of “Hold” and a consensus target price of $10.75.
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Shares of Rent-A-Center (NASDAQ:RCII) traded down 3.32% during trading on Thursday, reaching $11.06. 418,118 shares of the company were exchanged. The stock’s market capitalization is $588.35 million. Rent-A-Center has a 52-week low of $7.76 and a 52-week high of $13.73. The stock has a 50-day moving average of $11.74 and a 200 day moving average of $10.36.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, July 20th. Shareholders of record on Monday, July 3rd will be issued a dividend of $0.08 per share. The ex-dividend date is Thursday, June 29th. This represents a $0.32 annualized dividend and a yield of 2.80%.
In other news, Director Steven L. Pepper acquired 45,000 shares of the company’s stock in a transaction on Tuesday, May 23rd. The stock was purchased at an average cost of $10.93 per share, with a total value of $491,850.00. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Chairman Mark E. Speese acquired 100,000 shares of the company’s stock in a transaction on Wednesday, May 10th. The shares were purchased at an average cost of $11.70 per share, with a total value of $1,170,000.00. Following the completion of the acquisition, the chairman now directly owns 844,627 shares in the company, valued at approximately $9,882,135.90. The disclosure for this purchase can be found here. Insiders own 3.40% of the company’s stock.
A number of hedge funds have recently made changes to their positions in the company. Russell Investments Group Ltd. purchased a new stake in shares of Rent-A-Center during the fourth quarter valued at $654,000. Comerica Bank boosted its stake in shares of Rent-A-Center by 5.4% in the fourth quarter. Comerica Bank now owns 56,417 shares of the company’s stock valued at $586,000 after buying an additional 2,898 shares in the last quarter. State Street Corp boosted its stake in shares of Rent-A-Center by 8.8% in the fourth quarter. State Street Corp now owns 1,593,327 shares of the company’s stock valued at $17,927,000 after buying an additional 128,770 shares in the last quarter. Federated Investors Inc. PA boosted its stake in shares of Rent-A-Center by 32.2% in the fourth quarter. Federated Investors Inc. PA now owns 149,442 shares of the company’s stock valued at $1,681,000 after buying an additional 36,379 shares in the last quarter. Finally, Renaissance Technologies LLC boosted its stake in shares of Rent-A-Center by 12.5% in the fourth quarter. Renaissance Technologies LLC now owns 492,210 shares of the company’s stock valued at $5,537,000 after buying an additional 54,700 shares in the last quarter. 96.81% of the stock is owned by hedge funds and other institutional investors.
Rent-A-Center, Inc is a rent-to-own operator in North America. The Company provides an opportunity to obtain ownership of products, such as consumer electronics, appliances, computers (including tablets), smartphones and furniture (including accessories), under rental purchase agreements. The Company operates in four segments: Core U.S., Acceptance Now, Mexico, and Franchising.
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