Compared to Estimates, Aaron's (AAN) Q1 Earnings: A Look at Key Metrics

Aaron's Company, Inc. (AAN) reported $511.5 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 7.7%. EPS of -$0.15 for the same period compares to $0.66 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $517.36 million, representing a surprise of -1.13%. The company delivered an EPS surprise of -87.50%, with the consensus EPS estimate being -$0.08.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Aaron's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenues- Lease revenues and fees & retail sales: $346.01 million versus $342.39 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -7.4% change.
  • Revenues- Aaron's Business- Non-Retail Sales: $23.94 million versus $23.37 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a 0% change.
  • Revenues- Retail Sales: $136.93 million versus the five-analyst average estimate of $144.63 million. The reported number represents a year-over-year change of -9.1%.
  • Revenues- Franchise royalties and other revenues: $5.92 million versus the five-analyst average estimate of $5.78 million. The reported number represents a year-over-year change of -2.8%.
  • Revenues- Aaron's Business- Other: $0.19 million compared to the $0.16 million average estimate based on two analysts. The reported number represents a change of 0% year over year.
  • Revenues- Aaron's Business- Franchise royalties and fees: $5.90 million versus $5.51 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a 0% change.
View all Key Company Metrics for Aaron's here>>>

Shares of Aaron's have returned -3.5% over the past month versus the Zacks S&P 500 composite's -1.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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