), one of the largest rent-to-own operators in the U.S., is
slated to report its third-quarter 2012 financial results on
October 22. The current Zacks Consensus Estimate for the quarter
stands at 68 cents per share, indicating an increase of 12.5%
from the prior-year quarter's earnings. Revenue, as per the Zacks
Consensus Estimate, is $759 million.
Rent-A-Center's second quarter earnings of 74 cents a share
surpassed the Zacks Consensus Estimate of 71 cents, and increased
8.8% from 68 cents earned in the prior-year quarter, aided by
growth in the top line.
Rent-A-Center's total revenue, which comprises store and
franchise revenues, elevated 7.4% to $749.7 million from the
year-ago quarter but fell short of the Zacks Consensus Estimate
of $757 million. Comparable-store sales for the quarter rose
2.8%. The boost in the top line was attributable to higher
revenue from the RAC Acceptance segment.
Estimate Revisions Trend
We do not see any major estimate revisions at this point.
Among the 10 analysts covering the stock, none revised the
estimate in the upward or downward direction for the upcoming
quarter. Moreover, the story remains the same for fiscal
Analysts kept their estimates intact, in the absence of any
major news having a direct or indirect impact on the
In the absence of estimate revisions, the Zacks Consensus
Estimate remained stable at 68 cents and $3.15 for the third
quarter and full-year 2012, respectively over the last 30
Positive Surprise History
With respect to earnings surprises, Rent-A-Center has
surpassed the Zacks Consensus Estimate over the last four
quarters in the range of 3.5% to 4.2%. The average remained at
3.7%, indicating that the company has surpassed the Zacks
Consensus Estimate by the same magnitude in the trailing four
Currently, Rent-A-Center, which competes with
), holds a Zacks #3 Rank that translates into a short-term Hold
rating. However, considering the fundamentals, we have a
long-term Outperform recommendation on the stock.
(AAN): ETF Research Reports
RENT-A-CENTER (RCII): Free Stock Analysis
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