), the rent-to-own operator, is slated to report its second-quarter
2014 results on Jul 21, 2014. In the last quarter, it posted a
positive surprise of 3.6%. Let's see how things are shaping up for
Factors Influencing this Quarter
Rent-A-Center hinted at a soft second-quarter performance. The
company held economic headwinds responsible for sluggish demand in
the U.S. business segment. Further, management hinted that revenues
and earnings for the quarter would fall short of its expectations.
Management now projects total revenue at $773 million, while
comparable-store sales are likely to register growth of about 0.6%.
Management also expects adjusted net earnings in the band of 36
cents to 38 cents a share.
Our proven model does not conclusively show that Rent-A-Center
is likely to beat earnings estimates this quarter. This is because
a stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here, as you will see below.
Earnings ESP for Rent-A-Center is 0.00%. This is because both the
Most Accurate estimate and the Zacks Consensus Estimate stand at 38
Rent-A-Center has a Zacks Rank #4 (Sell). We caution against stocks
with a Zacks Ranks #4 and 5 (Sell-rated stocks) going into the
earnings announcement, especially when the company is seeing
negative estimate revisions.
Stocks that Warrant a Look
Here are some companies you may want to consider as our model
shows that these have the right combination of elements:
Big Lots Inc.
has an Earnings ESP of +3.33% and a Zacks Rank #2 (Buy).
) has an Earnings ESP of +1.89% and a Zacks Rank #2.
Dollar General Corporation
) has an Earnings ESP of +1.21% and a Zacks Rank #3 (Hold).
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DOLLAR GENERAL (DG): Free Stock Analysis Report
RENT-A-CENTER (RCII): Free Stock Analysis
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WILLIAMS-SONOMA (WSM): Free Stock Analysis
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